{"id":16620,"date":"2023-01-31T23:56:44","date_gmt":"2023-01-31T23:56:44","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-on-chain-data-and-btcs-recent-price-rally-point-to-a-healthier-ecosystem\/"},"modified":"2023-01-31T23:56:46","modified_gmt":"2023-01-31T23:56:46","slug":"bitcoin-on-chain-data-and-btcs-recent-price-rally-point-to-a-healthier-ecosystem","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-on-chain-data-and-btcs-recent-price-rally-point-to-a-healthier-ecosystem\/","title":{"rendered":"Bitcoin on-chain data and BTC\u2019s recent price rally point to a healthier ecosystem"},"content":{"rendered":"
Bitcoin (BTC) had a rough year all throughout 2022.<\/p>\n
But fresh on-chain and futures market data show positive signs that the leading cryptocurrency by market capitalization has started to recover. <\/p>\n
After a bevy of short liquidations, the futures market is pointing toward renewed equilibrium. According to data from Glassnode, short position liquidations cleared out unhealthy market speculators, on-chain and exchange data now point to an improving spot market and exchange netflows. <\/p>\n
A large group of investors that were previously at a loss is now back in the category that Glassnode analysts label as \u201cunrealized profits.\u201d <\/p>\n
Futures data typically hold an equilibrium between longs and shorts. As the market moves, investors tend to update their futures to avoid liquidation. Conversely, in mid-January investors were caught off guard which resulted in an all-time high of 85% short liquidations. <\/p>\n