Cryptoanalysts from CryptoQuant talk about “the beginning of accumulation phase”

CryptoQuant analysts have released a report stating that long-term investors are choosing to get rid of their crypto assets. Experts from the South Korean agency believe that the bearish trend provoked the capitulation of investors, which is a positive signal for the first crypto coin.

It seems that bitcoin investors lost confidence in the growth of the digital currency to the planned limit and began to sell BTC. This suggests that the value of the asset has reached a multi-year bottom.

The increase in sales may be just the beginning of a trend, it will take a long time for long-term holders of bitcoins to finally give up.

“Obviously, during previous bearish periods, there was a long capitulation phase of long-term holders as these participants exited the market selling their holdings at a loss to new participants. Beginners were happy to buy assets in huge shares and held in anticipation of profits during a future bullish trend,” the report says.

Analysts concluded that long-term investors are selling their cryptocurrencies at a loss, indicating that the “accumulation phase has begun.” It is likely that this could “provide an excellent opportunity for long-term investment in the market.”

Bloomberg commodities expert Mike McGlone believes that digital currencies, US bonds and gold will show significant growth after the economic crisis. The analyst predicts a “great reversal” or a major correction in high-risk assets.

According to McGlone, the world is at the beginning of the biggest inflation in the last 40 years.

“Once we get through this period, bitcoin will become one of the best assets on the planet to hold, just like gold and US bonds. I think we’re back to deflation, and the best way to get deflation is to raise prices sharply and then drop them. This is what we do. We are at the beginning of a crisis,” the analyst said.

According to him, in the context of the revival of crypto markets, ETH should be considered together with BTC. McGlone believes that Ethereum is “revolutionizing the world of financial technology and tokenization, as the majority of NFTs” are based on its blockchain.