CryptoQuant.com2023-01-25

CryptoQuant PnL Index Confirms Early Bull Market For Now

Although it is still possible for the index to fall back below, the CryptoQuant PnL Index has issued a definitive buy signal for BTC, which occurs when the index (dark purple line) climbs above its 365-day moving average (light purple line). Historically, the index crossover has signaled the beginning of bull markets. Bitcoin inflows to exchanges have remained moderate despite BTC hitting the early BULL stage. Furthermore, BTC whales (large holdings with above 1,000 bitcoin) have not yet sent considerable amounts of coins to exchanges. From the standpoint of the spending behavior of long-term holders, there was an increase in the number of 12-to-18-month-old coins entering exchanges (3,390 BTC on January 18, when BTC surpassed $21,000). In the case of miners, however, we observed a considerable increase in bitcoin flows into exchanges (5,592 BTC on January 19) once prices exceeded $20K. For Ethereum, staking gains momentum as network activity increases. The number of ETH staked has reached a new record high of 15,9 million, representing over 13% of the total ETH supply. The unprecedented amount of ETH staked is the result of a surge in staking inflows and deposits. In the meantime, network activity increases as the number of active addresses and transactions increases.