What is the current state of crypto? Chain analyst explains

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Despite the market slowdown and widespread negative sentiment in the industry following the collapse of FTX, on-chain data still shows reason for optimism on Bitcoin (BTC).

As on-chain analyst Will Clemente has pointed out, just look at the positions of long-term holders, which have reached an all-time high despite bottoming out profitability.

Long-term holders are buying heavily in the bear market. They laid the ground, […] then these long-term holders distribute their holdings to new market participants in the bull market, he told Cointelegraph in an exclusive interview.

Another positive trend to note after the collapse of FTX, according to Clementes, is that the average crypto user is increasingly turning away from exchanges and taking custody of their own coins.

According to Clementes’ analysis, this is seen in the increased outflow of capital from exchanges to self-custodial wallets and also in the increasing amount of supply held by entities holding between 0.1 and 1 BTC.

Combining these two metrics gives you this picture of coins coming from exchanges in these custodial wallets for the average everyday retailer. And so, I think that’s very positive, he said.

For more on the silver lining in the wake of FTX’s collapse, check out the full interview and don’t forget to subscribe!

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