Current on-chain data and market sentiment suggest the cryptocurrency market may be entering a late-cycle phase, often referred to as a 'danger zone.' A high percentage of the supply is in profit, and long-term holders are distributing assets to new entrants. Additionally, the realized cap versus market cap is stretching compared to previous cycles.
Social media sentiment is polarized, with extreme bulls predicting prices of $100,000 to $1 million and claiming a 'supercycle,' while extreme bears label the market a 'scam' and predict a crash to zero, despite prices remaining near all-time highs. This divergence in sentiment, combined with on-chain indicators, suggests the market is not in an 'early' or 'mid' cycle, but rather a potentially risky phase.
Crypto Market Sentiment Indicates Potential Danger Zone
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