Misleading crypto narratives continue, driven by ‘sensationalist’ sentiment

A crypto analyst says inaccurate narratives nonetheless flow into within the cryptocurrency market, primarily primarily based on skewed info slightly than onchain knowledge to again it up.

“Watch out for misinformation. Regardless of the information, deceptive narratives persist,” CryptoQuant contributor “Onchained,” stated in a March 22 market report.

“Such claims typically lack onchain validation and are pushed by sensationalist market sentiment slightly than goal evaluation,” the analyst stated, including:

“Belief knowledge, not noise, confirm sources and cross-check onchain metrics.”

Onchained pointed to the current actions of Bitcoin (BTC) long-term holders (LTH) — these holding for over 155 days — for instance of false narratives clashing with actual knowledge.

The analyst identified that whereas some narratives declare Bitcoin long-term holders are “capitulating,” the information reveals they’re remaining constant. “The info leaves no room for hypothesis,” Onchained stated.

The Inactive Provide Shift Index (ISSI) — which measures the diploma to which long-dormant Bitcoin provide is shifting — “reveals no significant LTH promoting stress, reinforcing a story of structural demand outpacing provide,” Onchained stated.

Narratives are all the time being challenged

Crypto analytics platform Glassnode lately made an analogous commentary primarily based on knowledge, saying, “Lengthy-Time period Holder exercise stays largely subdued, with a notable decline of their sell-side stress.”

Crypto market narratives are always altering and being challenged.

One long-standing crypto narrative underneath debate is the relevance of the 4-year cycle idea, which means that Bitcoin’s worth follows a predictable sample tied to its halving occasion each 4 years.

MN Buying and selling Capital founder Michael van de Poppe stated in a March 22 X submit, “I assume that we are able to erase all the 4-year cycle idea and that we’re in an extended cycle for Altcoins.” 

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Echoing an analogous sentiment, Bitwise Make investments chief funding officer Matt Hougan lately stated that “the normal four-year cycle is over in crypto” because of the current change within the US authorities’s stance.

“Crypto has moved in four-year cycles since its earliest days. However the change in DC introduces a brand new wave that may play out over a decade,” Hougan stated.

Alongside this, some analysts are even debating whether or not all the Bitcoin bull market is over.

CryptoQuant founder and CEO Ki Younger Ju stated in a March 17 X submit, “Bitcoin bull cycle is over, anticipating 6-12 months of bearish or sideways worth motion.”

Ju stated all Bitcoin onchain metrics point out a bear market. “With contemporary liquidity drying up, new whales are promoting Bitcoin at decrease costs,” Ju stated. 

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