Golden Cross and On-Chain Metrics Signal Opportunity
Key Takeaways
- Ratios for $BTC and $ETH demonstrate a return to normal leverage levels.
- The current valuation of the Bitcoin network as a multiple of miner revenue is rebounding and is set for further expansion.
- Bitcoin supply continues to be constrained by long-term holders accumulating, while the Lightning Network further drives supply crunch. Ethereum supply trending higher again on the back of decreased NFT activity.
- Soft economic data will prolong the Fed’s dovish policies long enough for a risk-on rally to take place into the fall, benefitting risk-on assets such as Bitcoin and Ethereum in the short term.
- Bitcoin price reestablishes itself above the 200-day SMA and underwent a “Golden Cross” on Tuesday as the 50-day SMA moved above the 200-day SMA.
- The Bottom Line: The combination of fundamental metrics presented on-chain, bullish technical indicators, and soft macro picture allows us to reiterate our view of a bullish run through the remainder of the year. We are buyers of BTC and ETH into any near-term selling.
Leverage Revisited
Last week, the market encountered volatility for the first time in several weeks, as $1 billion of Bitcoin longs and $855 million of Ethereum longs were liquidated. This was part of an overall leverage washout totaling $3.7 ...Reports you may have missed
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