Assessing On-Chain Metrics: Insights Into the Current Crypto Market Trends

While cryptocurrency markets have remained relatively stagnant over the past few months, there are indications from several on-chain metrics that suggest the current bull run may just be starting. One such indicator is Bitcoin's market dominance, which remains above 56%, historically signalling the early stages of a bull market. Additionally, the Bitcoin MVRV Z score, which compares the asset's current market value to its historical average, is currently under three, indicating that the market may not have peaked yet. The Puell multiple, another metric linked to cycle peaks, has not exceeded three, suggesting potential for further growth. Hodl waves, which track the amount of Bitcoin held by different cohorts, also indicate bullish sentiment, with a decline in selling pressure from newer holders. Finally, Bitcoin miner revenue per hash, while trending down over time, has shown spikes during previous market cycle peaks. However, some metrics like the realised hodl ratio and cumulative value-days destroyed suggest caution, indicating the possibility of market overheating and reaching a peak.