What are Bitcoin investors aiming for in the midst of growing BTC outflows
Data on the chain suggested that June was the worst month for Bitcoin [BTC] considering the performance of the royal coin since 2011. It fell by 37.5% during the month in an already catastrophic second quarter. Feds, inflation and now recession rumors are circulating around the crypto market. How will these calls affect BTC performance in the coming weeks?
Despite the complaints during June, the month of July has bought some respite for Bitcoin. The entire crypto market is going through a so-called “mini-rally”. Still, Bitcoin managed to trade over $ 20,000, albeit briefly. It is currently trading just below the $ 19,900 mark with the bulls dictating an upward movement. The current 3.96% increase in BTC prices has created a positive mood across the market.
In the meantime, Glassnode has published its weekly newsletter discussing important calculations on the chain. The report admits that
“With US inflation forecasts for June still high, and storm clouds of a potential recession looming, the market is still highly exposed. This is evident in the chain’s performance and activity to Bitcoin, which has declined modestly in recent weeks.”
The newsletter included the following data to support the claim.
Dive into data !!
There has been a shift in active addresses on Bitcoin since the peak in November 2021. At that time, around 1.2 million addresses were active on the network. While the numbers have fallen to 870,000 as of 5 July, it has become difficult to keep the existing addresses given the market’s gloomy scenario.
Source: Glassnode
Entities’ net growth calculation has observed a downward trend showing the difference between new and leaving units in the chain. The growth rate saw a couple of peaks during the Luna collapse and again during the sale at the end of June. Furthermore, these figures have plummeted to bear market levels in 2018 and 2019 after falling to 7,000 units daily.
In contrast to the mentioned data, there is an interesting development related to the Bitcoin offer on stock exchanges. Despite falling prices, there has been an increase in the number of currency exits in recent months. Since March 2020, over 750,000 BTC have been taken out of stock exchanges. However, during the last three months alone, 18.8% of the total or 142.5k BTC was seen in outflows. This is a sign of a growing community with strength in numbers.
Source: Glassnode
Recent data on the chain also indicated that the worst could be against Bitcoin. Furthermore, the crypto community has been euphoric since the revival of Bitcoin when it passed $ 20k on July 5th. Crypto enthusiast Lark Davis was also seen sharing this joy with his one million followers.
Look … on the bright side, we can all celebrate when #bitcoin gets back over $ 20,000 again!
– Lark Davis (@TheCryptoLark) July 5, 2022
