With almost all Short-Term Holders now underwater on their position, sentiment has shifted towards the negative. In this report, we explore several measures to track investor sentiment. We develop indicators which assess divergences between the market and observed investor behavior.

The Realized Cap is one of the most important on-chain metrics, and is an essential primitive for analysts to master. In this report, we document how the Realized Cap, and its derivatives, describe the fear and greed response of investors, which are the primal forces driving Bitcoin market cycles.

In this issue, we revisit some of the foundational profitability metrics discussed in the previous months to check the pulse of the Bitcoin market. We also explore metrics shedding light on liquidity in the crypto markets and see how they can inform investors of risks.