Another Door Opens

Chart of the Day

Regulatory rumbles are nothing new to the crypto space, but the entire market shuddered when China dealt another heavy blow. BTC was down more than 10% in a matter of hours, alongside ETH which plummeted 15%, after the world’s second-largest economy announced a sweeping ban for all crypto transactions. Altcoins, including exchange tokens that are popular among Chinese traders, suffered steeper losses. Once again, the $40k support level withstood the sudden sell-off triggered by this escalated crackdown on crypto, and BTC managed to kickstart the new week with a recovery. On-chain data indicate that short-term holder supply has slid to 20%, reaching historical lows. This means that less than 20% of the circulating Bitcoin has been transacted within the last five months — the HODL wave is going strong. As the saying goes, as one door closes…