A number of cryptocurrencies are currently trading in the red and Bitcoin (BTC) recently hit a two-year low.
In such extraordinary bear market conditions, the FTX crisis has only served as fuel to the fire and created widespread mistrust among crypto participants, making them wary of investing now. Bitcoin is approaching an important threshold that could determine the short-term direction of the market. Despite some bullish signs on the technical charts, it is still too early to say whether a new bullish phase is on the way.
Active Addresses Surge
A highly reliable analytics company– IntoTheBlock- has noticed a stabilization in the number of BTC and ETH active addresses, which suggests that more people are using the top two cryptocurrencies now.
According to IntoTheBlock, one important metric is showing bullish signs for Ethereum and Bitcoin. There was a drop in daily addresses for Ethereum and Bitcoin after the assets marked their ATH in May 2021. Active addresses have now stabilized sharply and have maintained a constant level since then.
“We see around a 36% increase in active addresses for Ethereum (327,000 addresses on March 8th, 2020 compared to 514,000 addresses on December 1st, 2022). Bitcoin has seen more modest gains with about [a] 20.6% increase in active addresses (826,000 on March 9th, 2022 compared to 1.04 million on December 1st, 2022).”
The market intelligence company tracks active addresses daily, counting the number of wallets that complete at least one transaction each day. According to him, wider adoption is indicated by more active addresses. The analytics firm also noted that the number of active addresses for BTC and ETH has remained stable, despite volatile macroeconomic conditions.
Miner’s Holdings Reduce
However, Glassnode data shows that miners’ BTC reserves have dropped by 13K BTC over the past several months; it is now at 1,818,280.032 BTCs, a 14-month low. In October of last year, the price reached a 14-month low of 1,818,778.794. Moreover, due to a reduction in mining activity, Bitcoin’s hash rate has been decreasing as well.
According to on-chain data on short-term inflows and outflows from miners’ wallets, there were a lot of outflows in November. This can result in a decrease in price or an increase in volatility. Miners sold over 6,000 bitcoins last week and 10,000 this week.
