Glimpses of positive momentum in an overall bearish market? Report

Look at different segments of the blockchain industry, they seem to react to events in the broader world. While one segment like nonfungible tokens (NFTs) could experience a sudden rise in interest and investment, other areas like decentralized finance (DeFi) may be slowing or stagnant. It is no different for the month of August, which saw positive signs, such as Bitcoin’s long-term-holder numbers nearly reaching its previous all-time high of over 13.6 million. Other segments, such as GameFi, experienced a 13.8% decrease in new users in the space from July. 

It’s important for those involved in the blockchain industry to have a finger on the pulse of different areas of the market, and Cointelegraph Research’s latest Investor Insights analyzes key indicators from different sectors of the blockchain industry. Cointelegraph Research’s analyst looked at 10 segments in the blockchain space, including regulation, crypto mining, security tokens, Bitcoin and Ether derivatives, and venture capital activities.

Download and purchase this report on the Cointelegraph Research Terminal.

Long-term Bitcoin holders near all-time highs

At the end of August, the supply held by long-term Bitcoin holders was 6,000 coins away from reaching its ATH of 13.61 million. Long-term-holder supply is the number of coins that have not moved in 155+ days. This amounts to 70.6% of the total outstanding supply and is the threshold at which the probability of selling and spending in the future diminishes.

Such a high number marks a very bullish signal, giving insight into the supply that may be on the market in the future. This is only one side of the supply-and-demand equation, however, and crypto does not act in a vacuum outside of overall macroeconomic conditions. As can be seen in the chart below, BTC’s price went down even as supply left the market.

NFTs, crypto stocks and venture capital flash caution flags

Most of the segments analyzing August in the latest report show an Investor Insights score denoting a cautionary phase. This includes NFTs, which saw borrowing protocols like BendDAO suffer liquidity issues, giving some great opportunities to get into high-value blue-chip NFT projects.

Venture capital (VC) saw the continuation of the downtrend in investment capital in August, down over 31% from the previous month. It’s perhaps not a surprise, as firms look to remain risk-averse during these uncertain times, investing mostly in solid projects with long-term time horizons. This is a trend also seen in crypto stocks, with the graph below showing several companies with stocks with negative monthly returns.

The Cointelegraph Research team

Cointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.

Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses.

With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the Investor Insights Report.

Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

All Dutch and English crypto news!

Korean police reportedly arrest first person involved in Terra collapse

After months of investigation without any single arrest and the main offender on the run teasing the enforcers on Twitter, South Korean police have reportedly...

Bitcoin fails to move towards the $21,368 resistance level: Will it dip soon?

Bitcoin has performed well over the last few days but has failed to surge past the resistance level above $21k. Bitcoin, the world's leading cryptocurrency, has...

Most cryptocurrencies are securities, says SEC’S Gary Gensler

Gary Gensler believes that most cryptocurrencies are securities and wants the SEC to regulate the market.   Gary Gensler, the Chairman of the United States Securities and...

BTC to outperform ‘most major assets’ in H2 2022 — Bloomberg analyst

Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, stated October has historically been the best month for Bitcoin (BTC) since 2014, averaging gains of about...

Beste exchanges

Koop je crypto bij Bitvavo