Cathie Wood's Ark Invest Report Highlights Bitcoin's Strong Fundamentals
Bitcoin's Fundamentals Show Resilience
Cathie Wood’s Ark Invest has released its September 2022 Bitcoin Monthly report, highlighting strong fundamental support for Bitcoin. The report emphasizes solid on-chain activity and network transparency, suggesting that Bitcoin’s current price does not fully reflect its robust underlying strength.
Short-Term Holder Cost Basis Drops Below Long-Term Holder Cost Basis
For the first time since late 2018, Bitcoin’s short-term-holder (STH) cost basis has fallen below its long-term-holder (LTH) cost basis. This crossover is often associated with high-conviction market bottoms, indicating that short-term holders have capitulated or transitioned into long-term holders. This shift suggests reduced speculative excesses in the market.
Bitcoin's Hash Rate Reaches New Heights
Bitcoin’s hash rate recently surpassed 300 exahashes per second (EH/s), demonstrating the network’s strong security and miner participation. This milestone underscores Bitcoin’s resilience despite macroeconomic uncertainties and market sell-offs.
Ethereum's Merge and Long-Term Prospects
The report also discusses Ethereum’s recent merge upgrade, noting it as a “sell the news” event. While the upgrade has generated significant hype, Ethereum’s long-term success will depend on the merge’s ability to deliver on its promises.
Long-Term Holder Supply Reaches All-Time High
The long-term holder supply of Bitcoin has reached an all-time high of 13.7 million BTC, representing 71.5% of the total supply. This signals extremely strong holding behavior and reduced selling pressure.
Bitcoin's Position in a Challenging Macro Environment
Despite ongoing macroeconomic uncertainties and the possibility of a recession, Bitcoin’s fundamentals remain strong. The report suggests that Bitcoin is well-positioned to navigate unfavorable macro conditions, with its net realized profit loss indicating the completion of a cyclical capitulation.
Overall, Ark Invest’s report paints a positive picture of Bitcoin’s fundamentals, emphasizing its resilience and strong holding patterns amid challenging market conditions.
What is Coinefficiency?
Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.
Why Use Coinefficiency?
- Advanced market analytics to identify trading opportunities.
- Compare markets relative performance.
- Understand market cycles over time. See market levels.
- Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.
With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.
Get Started with Coinefficiency
Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.