Crypto influencer Anthony Pompliano is unveiling a feature of Bitcoin (BTC) that he believes will drive the next wave of its adoption.
“On-chain [data] is not some magical indicator. It doesn’t tell us the future. But what it does do is it opens up in a transparent way exactly what’s already happening on-chain.
This data is available in the Bitcoin market. It’s like getting an earnings report every single day on the Bitcoin network.
The Wall Street investors are going to open their eyes and start to realize that on-chain metrics are incredibly important. And as they begin to realize they have more information and more transparency in this industry, you’re going to see more and more investors, more and more traders, start to come into the market.”
The Bitcoin bull also says that on-chain data reveals that more than half of BTC’s supply has not moved in 12 months, suggesting that investors are willing to hold the king crypto for the long haul.
“My favorite metric though is that 64.5% of Bitcoin hasn’t moved in a year. This market’s illiquid, and it’s going to take a catalyst of demand to drive the price higher. Where that comes from, I don’t know and neither do most people, but when it comes, as we’ve seen many many times before, Bitcoin moves fast once it gets going.”
Popular on-chain analyst Willy Woo is also keeping a close watch on the falling supply of BTC available on crypto exchanges. According to Woo, BTC is gearing up for a supply shock squeeze similar to what happened in the fourth quarter of 2020.
“Bitcoin price is sideways because Wall St is selling futures contract in a macro risk-off trade. Meanwhile, institutional money is scooping spot BTC at peak rates and moving to cold storage.
It’s times like these I remember the Q4 2020 supply shock squeeze.”
ICheck Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/HUT Design/Sensvector