- Cathie Wood’s Ark Invest monthly bitcoin report shows solid fundamental support for bitcoin.
- The report covers various fundamentals of bitcoin and its current stance.
- Bitcoin’s hash rate crossed 300 EH/s yesterday.
Founder, CEO, and CIO of Ark Invest Cathie Wood released the September 2022 edition of Bitcoin Monthly. The report covers several factors, including on-chain activity and the transparency of the network. The bitcoin report highlights solid fundamental support for bitcoin.
Thrilled to welcome @WClementeIII as guest author of The Bitcoin Monthly, and happy that on-chain analysis is highlighting, on balance, solid fundamental support for bitcoin. https://t.co/svzFyZ5v9i— Cathie Wood (@CathieDWood) October 4, 2022
For the first time since late 2018, Bitcoin’s short-term-holder cost basis dropped below its long-term-holder cost basis, which often denotes a solid market bottom.
The on-chain activity of bitcoin points to considerably more robust holding patterns and network fundamentals than its present price would imply.
The report stated that Bitcoin has traded between $19,000 support and $23,000 resistance. Usually associated with high-conviction market bottoms, the short-term-holder (STH) cost basis has dipped below the long-term-holder (LTH) cost basis.
This cross shows that short-term holders have capitulated or are transitioning into long-term holders, which is likely an indication of low speculative excesses.
Even amidst a rising market sell-off due to macroeconomic uncertainties, BTC’s net realized profit loss is an indicator of the completion of a cyclical capitulation.
The report also talks about Ethereum and its merge upgrade. It states that despite all the hype about the merge, it was a “sell the news” event. The report also indicates that Ethereum’s long-term performance depends on the success of the merge in the long run.
The long-time holder supply of Bitcoin has risen to an all-time high of 13.7 million BTC (71.5% of the total supply). The report claims this is a signal of extremely strong holding behavior.
Ark Invest report also suggests that bitcoin is still fighting the possibility of an upcoming recession and other unfavorable macro environments.
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