Important indicator of investor sentiment plunges to levels dangerously close to ATL
As Bitcoin (BTC) dips below $21,000, on-chain analysts are reporting that some core activity metrics of its network are witnessing new all-time highs.
Bitcoin (BTC) blockchain is calm amid bear market
According to the chart shared by Glassnode Alerts, an automated service by leading on-chain analytical firm Glassnode, the share of Bitcoins (BTC) that were active at least five years ago prints a new record.
— glassnode alerts (@glassnodealerts) June 15, 2022
As per the chart, almost 23.5% of Bitcoins spent the last five years not leaving their wallets. It should be noticed that this metric grows naturally except the most overhyped phases of bullruns.
This echoes another analysis noticed by U.Today yesterday. An on-chain analyst posted that Bitcoin Dormancy Flow (a derivative of BTC wallet activity) is at its lowest since 2010.
As such, this is the first bear market the Bitcoin (BTC) supply meets with such insignificant on-chain activity.
Extreme Fear prints new record
Partially, this should be attributed to the fact that the trading and locking of Bitcoins (BTC) migrate to centralized services (CEXes) over time and, therefore, become invisible to on-chain instruments.
At the same time, the Bitcoin (BTC) Fear and Greed index by Alternative finally failed to hold the 8/100 level it bottomed at in May and plunged by yet another point.
Bitcoin Fear and Greed Index is 7 – Extreme Fear
Current price: $20,970 pic.twitter.com/urBV8ovhXP
— Bitcoin Fear and Greed Index (@BitcoinFear) June 15, 2022
As of June 15, 2022, this metric is at lows not seen since Q3, 2019. Should it plunge by just two more points, it is set to revisit the all-time low registered in October 2019.