Bitcoin Is Yet to Catch Up With Its ‘ Out-Of-Control’ Fundamentals, Says Analyst
The largest cryptocurrency by market cap, Bitcoin remains in a period of stagnation as its price fails to gain momentum following the release of the Federal Open Market Committee (FOMC) minutes. Unfortunately, this lack of positive influence extends to the broader cryptocurrency market, which is currently experiencing a downturn.
According to a popular crypto analyst, Bitcoin’s price is yet to align with its “out-of-control” fundamentals. In a recent YouTube video, the anonymous host of InvestAnswers shared insights and highlighted that Bitcoin’s fundamental metrics are showing positive trends across the board, with the exception of BTC’s supply on exchanges, which is decreasing.
When a significant amount of Bitcoin is withdrawn from exchanges, it can indicate a bullish period as influential investors accumulate this leading digital asset. The InvestAnswers host further explained the increasing supply held by long-term holders, which currently stands at approximately 14.5 million Bitcoin.
“Then we have addressed with a balance greater than one Bitcoin — over 1 million. Of course, many people have five wallets or more, so that doesn’t mean there are a million whole-coiners, ladies and gentlemen. There’ll never be more than 330,000 whole-coiners. But that is just an interesting stat to look at too,” the analyst said.
He said that Bitcoin’s fundamentals are incredibly strong, with various metrics showing positive trends. The supply of Bitcoin on exchanges is decreasing, indicating a potential bullish period as large investors acquire more of the cryptocurrency. However, despite these favorable fundamentals, the price of Bitcoin has not fully reflected the current situation.
The king coin is struggling to bounce back and is currently trading at $26,217. Bitcoin attempted to breach the $26,500 level but then hit reverse.
With Cardano’s Fundamentals Still Strong, Will There be ADA Price Rally Soon?
As investors become cautious ahead of Thursday’s release of the most recent US inflation statistics, Cardano, like Bitcoin, is at the head of the pack of cryptocurrencies that are decreasing in value. This morning’s crypto market plunged amid rumors that the US’s core inflation statistics may have increased.
The US Federal Reserve is predicted to continue raising interest rates in a hawkish manner, which will cause investors to pull back even more from high-risk investments like bitcoin and other cryptocurrencies. The release of FOMC minutes, which show that the Federal Reserve is still committed to rising interest rates, added to the market’s pessimism.
ADA’s Ecosystem Thrives, Bull Run Incoming?
Dan Gambardello, the founder of Crypto Capital Venture, recently told his followers on Twitter that Cardano will continue to thrive once the next bull cycle starts. An anonymous Twitter user @Cardano whale expressed a similar viewpoint in the short term, claiming that ADA’s fundamentals are still quite solid.
In a tweet, Gambardello expressed his opinion that the bear market that began last year is currently the reason why things are the worst for ADA. The final bear market leg, according to him, is just getting started and will be “volatile and crazy.”
The founder of Crypto Capital Venture acknowledges that this is merely his opinion and that he makes no promises in support of it. He is sure in his analysis, though, because of the data he has been gathering over the previous few years.
The ADA community should exercise patience, according to anonymous Twitter user @Cardano whale, because “ADA fundamentals are stronger than ever.” He also reminded the community that, despite the fact that the media rarely covers it, the Cardano ecosystem is thriving.