The on-chain fundamentals of the world's top cryptocurrency Bitcoin (CRYPTO: BTC) are showing a rather grim picture as the sentiment-tracking Fear & Greed Index reports "extreme fear" in the markets based on volatility, market momentum and volume, social media activity, surveys, dominance and trends.
What Happened: The seven-day moving average of the number of Bitcoin addresses that are sending coins to cryptocurrency exchanges just reached a one-year high of 7,788.
A Monday tweet by Glassnode Alerts (the Twitter (NYSE:TWTR) profile sharing on-chain trends of blockchain data firm Glassnode) also pointed out that the previous one-year high of 7,674 was observed on May 14, 2022, just two days earlier.
See Also: How To Earn Free Crypto
A separate Monday tweet also shows that Bitcoin's stock-to-flow (S2F) deflection just reached an all-time low of 0.276 — meaning that Bitcoin is now worth only 27.6% of what the S2F model estimates it to be worth.
The S2F is a quantitative model attempting to predict Bitcoin's future price as far ahead as 2026 by considering its issuance rate, which results in the estimated value going parabolic every time the network undergoes a block reward halving.
The model, introduced in the first quarter of 2019, used to align with Bitcoin's historical price to a surprising degree, largely by going parabolic after each halving.
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