Over the past 20 months, there has been a remarkable surge in the number of Bitcoin wallets holding at least 10 BTC, a phenomenon that has caught the attention of crypto enthusiasts and market analysts alike. This trend, which began in February 2022, has witnessed a substantial increase in the accumulation of these large cryptocurrency wallets.
According to data reported by Santiment on Twitter, 11,806 new addresses have crossed the threshold of holding 10 or more Bitcoin, marking an 8.12% increase in this category. This influx of large wallets has stirred curiosity within the crypto community, prompting experts to analyze the implications of this development.
Bitcoin Network Activity Fluctuations
Crypto data analytics firm CryptoQuant.com also shares insights regarding the underlying network metrics of Bitcoin. The firm indicated that despite the growing number of these sizable Bitcoin wallets, whales and institutional investors have been notably inactive in the market. However, the fundamental network metrics have remained robust, suggesting a potential hidden demand.
Examining the charts of Active Addresses (SMA 7) and Transaction Count (SMA 7), one can observe that Bitcoin network activity experienced significant growth in May of this year, likely driven by external factors such as market dynamics and investments. Nevertheless, this momentum sharply declined on September 19, signifying a contraction in Bitcoin network activity.
This dip in network activity may be attributed to a reduced influx of new investments into the crypto market, resulting in decreased liquidity and a reduction in price volatility.
Furthermore, the data on the total number of bitcoins transferred (Tokens Transferred, 14MA) indicates that there has been no substantial shift between whales and institutional investors, indicating a lack of catalyst for an imminent market rally.
Nonetheless, the current situation is not inherently negative. Key indicators of Bitcoin’s network fundamentals, such as hashrate and mining difficulty, continue to trend upwards and maintain their overall health.
Amid this dynamic crypto landscape, BTC’s price has been on a rollercoaster ride. Analysts, including CryptoCon and Bitcoin Technical Analysts, have shared their views on the current state of the market.
According to CryptoCon’s tweet, the times of fear surrounding Bitcoin may be subsiding. They suggest that the cycle’s bottom is clearly in, as evidenced by BTC’s deep move into the red NUPL zone.
CryptoCon further elaborates that historically, BTC tends to spend time in the yellow zone after this initial drop into the red zone before transitioning into the orange fear zone for a brief period.
Subsequently, BTC predominantly stays in the yellow zone, which aligns with the present market sentiment, indicating optimism and confidence among market participants.
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