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On Tuesday morning (Asian trading hours), the world awoke to a huge crypto market rally. As of the time of writing, BTC has surged by nearly 15% within the past 24 hours to trade above the $43,000 level. Crucially, if BTC closes above the key $42,000 level, the number one cryptocurrency by market cap will likely break its bearish trend. In a similar vein, ETH has rallied by about 12% within the past 24 hours to trade above the $2,900 mark. If ETH closes above the key $2,840 level (with BTC also holding the $42,000 level), this may signal a new bull trend, at least in the near-term.
Finally, most major altcoins have also flipped green, with top-performer LUNA leading the rallying charge. As of the time of writing, LUNA has risen by a staggering 25% from 24 hours ago to trade very near to the $90 level, while others like AVAX and SOL also experienced large double-digit percentage gains within a similar timeframe. Whilst this crypto market rally may come as a surprise to many if we are to consider the deteriorating macroeconomic and geopolitical factors, many key on-chain datapoints have been pointing toward this for a while now. For one, and if we are to consult the BTC UTXO Realized Price Distribution (URPD) chart (that tracks the on-chain distribution of coin supply at the price it last moved), we will realize that most long-term BTC holders have actually not been shaken at all by recent events, and have actually been holding fast through all the market uncertainty and volatility. Granted, many short-term top buyers were flushed out in the past week.
However, they comprise only a small and insignificant number (when compared to previous sell-offs) that is unlikely to push prices down to new lows, even prior to the recent rally. Further, the BTC Revived Supply Last Active 1+ Years chart that tracks the volume of coins older than one year that were spent within the week also did not experience any large uptick in its value within the past week, indicating that most long-term BTC holders are still very much holding and accumulating with bullish conviction. Finally, the estimated leverage ratio across all exchanges has also fallen below 0.2 over the past week, constituting a much-needed reset to the leverage and funding levels. As a result, and barring any black swan macroeconomic events, we are likely to experience lower volatility rates within the crypto market in the near-term. Of course, there are also other non-on-chain factors that are likely contributing to this recent crypto market rally. For one, the slew of economic sanctions against Russia has significantly pushed up the BTC/RUB trading volume. When viewed in tandem with Ukraine's collection of donations via BTC, this has certainly helped changed some people's perspectives with regard to cryptocurrencies and their capacities to be "hard assets". Finally, and very crucially, the number of BTC addresses with a balance of more than 1,000 BTC has also seen a sudden and huge spike today, with more than 100 whale wallets purchasing BTC in bulk on the spot markets within the past 24 hours. This, together with the aforementioned fact that many people are snapping up BTC via rubles, is likely to have contributed to a BTC supply shock that has eventuated in the crypto price rally that we are currently experiencing. As a result, the crypto space has been brought to a very interesting point indeed, where the next few days and weeks will be critical to see if this ostensible decoupling between the crypto market and the equities markets is a phenomenon that is here to stay, or merely a temporary occurrence.
It appears that KPMG (Canada) is really looking to ramp up its presence within the crypto space. On Tuesday, and just a mere few weeks after incorporating BTC and ETH into their corporate treasury, KPMG (Canada) announced that they have purchased a World of Women (WoW) NFT and an Ethereum Name Service (EMS) domain. In a statement released on the official KPMG website, Kareem Sadek, a Partner at KPMG (Canada), reiterated his belief in NFT technology, citing "numerous use cases" for them. Sadek also claimed that web3 is "the next iteration of the internet", that "will change the way people interact with brands, socialize within communities, and trade digital assets".