Bitcoin and Ethereum On-Chain Data has some good news for traders
A number of cryptocurrencies are currently trading in the red and Bitcoin (BTC) recently hit a two-year low.
In such an exceptional bear market situation, the FTX crisis has only served as fuel for the fire and caused widespread mistrust among crypto participants, making them wary of investing any longer. Bitcoin is approaching a critical threshold, which could determine the market’s short-term direction. Despite some bullish signals on the technical charts, it is still too early to say whether a new bullish phase is approaching.
Active address increase
A highly reliable analytics company – IntoTheBlock – has noticed a stabilization in the number of active BTC and ETH addresses, suggesting that more people are using the top two cryptocurrencies now.
According to IntoTheBlock, an important metric is flashing a bullish signal for Ethereum and Bitcoin. After assets marked their May 2021 ATH, there was a decline in daily addresses for Ethereum and Bitcoin. The active addresses have now quickly stabilized and held constant levels since then.
“We see an increase of around 36% in active addresses for Ethereum (327,000 addresses on March 8, 2020 compared to 514,000 addresses on December 1, 2022). Bitcoin has seen more modest gains with approx. [a] 20.6% increase in active addresses (826,000 on March 9, 2022 compared to 1.04 million on December 1, 2022).”
The market intelligence company keeps track of daily active addresses, which count the number of wallets that have completed at least one transaction each day. According to them, wider adoption of more active addresses is indicated. The research firm also stated that despite the troubling macroeconomic situations, the number of active addresses for BTC and ETH has remained stable.
Miner’s Holdings Reduce
However, Glassnode data shows that miners’ BTC reserves have dropped by 13K BTC over the past few months; it is now at 1,818,280,032 BTC, a 14-month low. Last October, the price hit a 14-month low of 1,818,778.794. Also, due to a reduction in mining activity, Bitcoin’s hash rate has also decreased.
According to on-chain data on short-term inflows and outflows from Miners’ wallets, there were many outflows in November. It can result in a price decline or an increase in volatility. Miners sold over 6,000 Bitcoins last week and 10,000 this week.
