Research Study
Q2 2023 Signals Report
A quarterly breakdown of key market metrics that could be impacting price and investor sentiment
by Fidelity Digital Assets
July 18, 2023 • 22 min read
Digital assets are unique in that they not only generate traditional market signals, but also an entirely new set of signals based on on-chain data that can be viewed by anyone. In this report, we have collected what we think are the most reliable signal indicators, grouped them by time horizon, and provided an overall assessment of the conditions for each time horizon.
As of the end of Q2 2023, the data suggests an overall positive outlook for both bitcoin and ether.
Bitcoin, up roughly 85% YTD, has maintained important price levels and is seeing its on-chain metrics return to a more “normal” state after the speculation and experimentation of ordinals wanes. Ether, up roughly 62% YTD, is seeing potentially positive price signals and growing on-chain metrics.
Ethereum continues to maintain a higher rate of burn than issuance, resulting in more than 700,000 ether being removed from the network. Meanwhile, bitcoin miners have maintained a healthy profit margin, as seen in the Puell Multiple.
Read more to learn what metrics we’re watching and what they may be telling us.
ANY OPINIONS EXPRESSED IN THIS MATERIAL ARE THOSE OF THE AUTHORS ONLY, NOT OF FIDELITY DIGITAL ASSETS, AND ARE SUBJECT TO CHANGE AT ANY TIME DUE TO MARKET OR OTHER CONDITIONS.
The information herein was prepared by Fidelity Digital Asset Services, LLC and Fidelity Digital Assets, Ltd. It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer or the solicitation of an offer to buy or sell securities or other assets. Please perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
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Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment. Fidelity Digital Asset Services, LLC and Fidelity Digital Assets. Ltd. do not provide tax, legal, investment, or accounting advice. This material is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. Tax laws and regulations are complex and subject to change. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
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