BTC Illiquid Supply Change Chart Breaks Record; Meta Back in Crypto Fray

Chart of the Day





On Wednesday, the broader crypto market printed further losses in lockstep with the U.S. equity markets amid a revelation that the U.S. central bank's stance has taken a hawkish turn. As a result, BTC has since retraced to the $43k handle after shedding another 4% of its market value in the last 24 hours. Unfortunately, the largest cryptocurrency by market cap has gained some bearish momentum after the resistance zone at $45k caved in to immense selling pressure from both spot and leveraged traders. Several technical indicators are now also pointing to the possibility of further downside movements by BTC that will likely see it test its support levels at the $40k to $42k zone. It seems that the recent aggressive acquisitions by Terra's Luna Foundation Guard (LFG) and software company MicroStrategy have done little to rescue BTC from continued downside corrections.

However, and in consulting some key on-chain data points, these major buys did push the BTC Illiquid Supply Change chart to a new record of 214 consecutive days of accumulation. There are two ways to look at this signal. On one hand, the 2020 accumulation phase that lasted 188 days ended with BTC soaring to new heights. If history can be relied on to repeat itself, the extant state of illiquid supply may potentially be a massively bullish signal. On the other hand, we also haven't actually witnessed any major structure-altering capitulation events for a very long time now. Either way, this is a very key on-chain metric to watch out for if we want to have a better understanding of the market's next direction. 

In a similar vein to BTC, ETH has failed to stay atop the $3,200 level after posting a 4.6% decline in the last 24 hours. Most major altcoins are also deep in the red, with speculative memecoin DOGE leading the plunge after suffering a double-digit percentage loss from 24 hours ago.





Talk of the Town





On Thursday, Meta, formally known as Facebook, revealed that they are still very much interested in creating tokens that will be circulated within the metaverse. According to the Financial Times, Meta is currently exploring a centralized in-app token that is jokingly referred to within the company as the "Zuck Buck". Meta is also contemplating the creation of "social tokens" or "reputation tokens" as rewards for contributors to their platforms.