caueconomy
Fundamentals are improving but slower than in past cycles.
On-chain activity as measured by annual address DPO shows relative improvement in demand conditions in Bitcoin, although it shows early stages of bear market exit. If we compare the on-chain activity of previous cycles, we see a rapid change in market sentiment after the establishment of price floors that have not yet occurred this cycle. At this time, fears external to the network may be impacting full demand returns and delaying a sharper improvement in network fundamentals. The understanding of a possible turbulent year in terms of macroeconomic conditions has not yet enabled a feeling of greater risk appetite and investors remain cautious. It will be important for us to see a structural improvement in order to have greater solidity in affirming a bull market return, at this moment, data suggest a transition period that will depend on other external factors for it to be concluded.