The Bitcoin Drop Explained in Seven Fascinating Blockchain Analytics
We are going through one those irrationally bearish moments in the cryptocurrency markets with prices dropping from mid 8000s to low 7000s. A lot of speculation has been created around the macro-factors influencing the downturn. The drop has also break through every technical charts and analysts keep publishing daily forecasts calling new bottoms or reversals that, somehow, contradict their predictions from the previous day( not that this ever happened before 😉 ). But how does this downturn reflects in blockchain activity? Looking at some of the IntoTheBlock models, we can find some interesting patterns that reveal the bearish momentum in the market and offer some clues(not predictions) about the direction.
Predicting the Present
One of my mentors in machine learning always used to say that we should be very good at “predicting the present” rather than the future. What he meant was that clearly understanding an environment offers all sorts of insights about the near term future without having to do major forecasts. Let’s think about the blockchain activity as a way to predict the present of major crypto assets.
Let’s explore some interesting metrics for Bitcoin:
