3 Bitcoin Metrics That Hit All Time Highs This Week And What They Mean For Btc Prices

Bitcoin Block Size Hits Record High

Bitcoin’s average block size of 2.5 MB is particularly significant, as it was achieved after the launch of the Ordinals protocol in January 2023. This protocol enables the creation of non-fungible tokens (NFTs) on the Bitcoin blockchain. Through this protocol, creators can enter Bitcoin satoshis with certain types of data, including JPEGS, videos, and audio. The resulting asset is called an ordinal. Also, for those unfamiliar, a satoshi is the smallest denomination of Bitcoin; one BTC is equal to 100,000,000 satoshis.

This extra data has caused the Bitcoin block size to increase ever since the Ordinal protocol was introduced. Before the launch of the protocol, the average Bitcoin block size hovered within the range of 700KB to 1.5MB. However, after the introduction of Ordinals, the block size shot to 2.52MB on February 12th. Overall, Bitcoin’s block size limit is around 4MB.

NFTs have recently become very popular in the art world, with some pieces selling for millions of dollars. Therefore, the ability to create NFTs on the Bitcoin blockchain could attract more users, collectors and artists to the legacy network, further driving the demand for BTC.

Non-zero addresses hit ATH

The number of non-zero Bitcoin addresses also reached an all-time high of 44 million following the launch of Ordinals. This metric tracks the number of unique addresses that have received or sent BTC, and a higher number of active addresses is generally seen as a positive signal for BTC prices.

The high number of non-zero addresses suggests that Bitcoin is becoming more widespread and accepted as a form of payment and store of value. This is important because wider use can lead to a virtuous cycle of increasing demand and higher prices. As more people use Bitcoin to transact and store value, the network becomes more valuable, which in turn attracts more users and investors.

The high number of non-zero addresses may also increase institutional interest and investment in Bitcoin. Institutions typically look for assets with high liquidity and a large user base, and the growing number of non-zero addresses may make Bitcoin a more attractive investment for them.

Hodlers to the rescue

The number of long-term BTC holders has also reached an all-time high, according to a report from CryptoSlate. Long-term holders can be defined as wallets that have held BTC for more than two or five years. What is surprising is that most long-term investors from 2021 are at a loss given BTC’s current price valuation. On the other hand, those who have held Bitcoin since the start of 2018 are doing much better. This is because BTC traded around the $10,000 mark that year, leaving most investors from that period in the green as of now.

The growing number of long-term holders indicates that more and more investors believe in the long-term value proposition of Bitcoin and are willing to tolerate short-term price fluctuations. Additionally, long-term owners are typically more committed to the asset and less likely to sell, which can help stabilize the market and prevent large price swings.

This is important because one of the challenges of investing in cryptocurrencies is their volatility. Bitcoin in particular has been known to experience large price swings in short periods of time, which can be unsettling for investors. However, the growing number of long-term holders can help reduce this volatility, making Bitcoin a more stable and predictable investment.

Conclusion

The recent milestones in Bitcoin suggest that the cryptocurrency is becoming more widely accepted and valuable as an investment asset. The growing number of non-zero wallets indicates the growth of the Bitcoin user base. Also, the ability to create NFTs on the Bitcoin blockchain may attract more steady users and investors to the legacy network. And finally, the growing number of long-term owners can help stabilize the market and reduce volatility.

However, investors should always keep in mind that BTC prices can be affected by several other factors, such as regulatory changes and market sentiment. Therefore, it is important to carry out proper due diligence and consider all relevant factors before making investment decisions. Also, always remember to invest as much as you can afford to lose completely.