Bitcoin just saw the biggest drop of the year as the prices went as low as $30,540. Upon looking at the bigger picture, however, large corrections are inevitable in the market. More so as the on-chain fundamentals have never been as bullish as it is now.
The world’s largest crypto-asset’s trading volumes and active addresses have now crossed its previously established all-time highs during the last crypto bull run back in 2017. Meaning, even as the drop created quite an uproar among many investors, the bull run 2020 is far from over.
More Money Inflow, More Liquid
On the 12th of January, Bitcoin’s hash rate soared to 139.8 Exa hash per sec surpassing its previous peak whereas the mining difficulty rose to a fresh high of 18.74 T, as per the latest BitInfoCharts. The rising confidence can also be seen in the increasing trading volume figures that was not seen since the last bull market. With a huge influx of money flowing on the cryptocurrency exchanges, the market was now becoming more and more liquid as well as efficient.
Number of market participants in Bitcoin network could be higher than before
In addition, the daily active addresses on an average surged to 1.24 million breaching the former ATH of 1.19 million established back during the crypto boom of 2017, according to the chart by IntoTheBlock. Notably, the numbers for daily active addresses have been on a consistent rise and the continued trend essentially suggested a fresh adoption trend and a substantial spike in activity for Bitcoin.
Active addresses: ATH
Active entities: ATH
Hash Rate: ATH
Number of whales: ATH
Illiquid supply: ATH
Non-zero BTC addresses: ATH
Don't let short-term $BTC price action distract you.
Fundamentals are strong.
The network is healthy.
— Rafael Schultze-Kraft (@n3ocortex) January 11, 2021
Even in a bull market such as these, corrections were very much part of it and were nothing but healthy. As asserted by Rafael Schultze-Kraft, the CTO of blockchain intelligence platform Glassnode, the Bitcoin network was indeed healthy.
Not just that, today is also a historic day. The 12th of January 2020 marks the 12th anniversary of the first-ever Bitcoin transaction that was sent from one person to another. It was the computer scientist Hal Finney, who for the very first time, received 10 Bitcoins as a test from the network’s mysterious, pseudonymous creator, Satoshi Nakamoto.