Jarvis Labs’ Says Market Wrote off The Halving: Wakeup call Incoming
Disclaimer: The text below is a press release that was not written by Cryptonews.com.
With Tether adding $4.6 billion to their market cap in three months, there’s more than 5x the amount of USDT being added to crypto than the amount of new BTC being added in terms of USD.
It’s demand that’s driving prices higher since March, the team states in their report. They continue detailing how the market is getting ready to rise higher.
Here’s Managing Partner Ben Lilly with more on this,
“The effect of the halving hasn’t translated to higher prices yet. Traders and the market in general wrote it off… Even though the big picture reflects orders of magnitude more money coming into crypto than before the halving. It’s one of those scenarios where traders are looking to pick up pennies in front of a steamroller.”
And asking about why the market hasn’t gone higher yet, Ben said,
“Price is just coiling. We’ve really been in the same trading range since just a few days before to the halving on May 11th. The effect the halving has on price isn’t a one-day phenomena. It builds, and when it breaks, it’s powerful. When it does break we’ll witness the effect of the halving in the face of rising demand. Should be fun to watch.”
As far as why the exchange flows are sending signals, they pointed to a statistic called exchange net flows.
It’s a metric that takes the amount of bitcoin entering an exchange and then subtracts it from the amount leaving the exchange.
The team explains the last two times the 90-day average for this metric went negative shortly after the halving in 2016 and just before 2019’s mini rally.
In those two periods Bitcoin went from approximately $700 to over $20,000 and then from just under $4,000 to $14,000.
“These are powerful indicators that reflect the big picture of the market. The only difference is this time around, the signal looks stronger with more buildup. The media and investors who wrote of the halving are about to get a wakeup call.”
To learn more about Jarvis Labs and read their Market Outlook report, you can find it on their website here.
About Jarvis Labs
We are a team of passionate professionals with experience in data science, software engineering, economics and trading who came together to develop Jarvis, an artificial intelligence / machine learning software that tracks market movers. We’ve since gone on to become a one stop shop for crypto traders by building new tools, metrics, and platforms every day. Stop by Jarvis Labs to learn more and subscribe to our newsletter to learn what market mover is driving the market today.