Ecoinometrics - Surviving Winter

The key to strive in good times is to be default alive in bad ones.

Contrary to what the title suggests this newsletter is not about the 10 best tips to survive the cold weather in Europe with limited energy resources. 

No, today we are thinking about what it takes for digital assets to survive the winter and what might come next.

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Surviving Winter

Looking back at the bull market we used to cover on-chain data for Bitcoin on a weekly basis (you can still find the daily update here). But you might have noticed that I’ve stopped reporting about those regularly in the newsletter.

The reason is that in a bear market marginal buyers on the exchanges set out the price, not on-chain hodlers. 

So when demand is there it makes sense to pay close attention to on-chain data. In a bear market where the demand pressure is very low this is not as important.

And the level of demand for digital assets right now is very low. Google trends isn’t the alpha and omega of macro analysis but this kind of chart tells you everything you need to know.

Even the Ethereum merge event faded real quick.