Given that the development previously preceded a massive surge in price, the primary question now is whether the same “quiet before the storm” dynamic is playing out once more. However, while implied volatility indicates one of the quietest periods in years, history indicates that these times are rarely sustained.
In the meantime, the expert has underlined about 3 crucial on-chain metrics that are probably supporting the quiet before the storm narrative. These key metrics include BTC Exchange Reserve, the Market Value to Realized Value (MVRV) Ratio, and BTC Funding Rates.
When demand suddenly increases, dwindling reserves have historically been considered a sign of impending supply constraints. The metric continues to decrease, pushing it closer to its multi-year lows, indicating that fewer coins are available for instant sell-off.
