Bitcoin’s assessment of the last 365 days reveals this about BTC’s future

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Data from blockchain ana­lyt­ics plat­form, San­ti­ment revealed that Bit­coin [BTC]‘s Mar­ket-Val­ue-to-Real­ized-Val­ue (MVRV) stood at ‑43. This was close to the low­est posi­tion the met­ric has clinched before a rebound. His­tor­i­cal­ly, the king coin’s low­est was a neg­a­tive val­ue of ‑53 in Decem­ber 2018.

Accord­ing to San­ti­ment, in 2021, a con­sis­tent decline in the price and mar­ket cap­i­tal­iza­tion led to a sim­i­lar drop in active traders that trad­ed BTC. As a result, the index for active BTC traders dropped by an aver­age of 43% since last September. 

More on-chain declines 

At press time, BTC trad­ed at $19,137.16. Accord­ing to data from Coin­Mar­ket­Cap, the price posi­tion rep­re­sent­ed a 72% drop from its all-time high of $68,789.63 logged 10 months ago.

How­ev­er in 2021, the Bit­coin net­work hash rate grew steadi­ly. Accord­ing to data from Mes­sari, this stood at 225 MH/s at press time, hav­ing increased by over 60% in the last 365 days. Addi­tion­al­ly, data from the same source showed that the aver­age dif­fi­cul­ty on the net­work was at an all-time high of 32.05T. 

How­ev­er, despite these highs, the rev­enue paid to BTC min­ers per hash per sec­ond on the net­work declined severe­ly in the last year. Accord­ing to Mes­sari, the fig­ure dropped by 75%.

Source: Mes­sari

With­in the one-year peri­od under review, the king coin reg­is­tered a dis­par­i­ty in coin hold­ing behav­ior amongst the biggest stake­hold­ers on the BTC net­work. Accord­ing to data from San­ti­ment, hold­ers of 1,000 to 10,000 BTC dropped by 2% in the last year. 

The cur­rent count for this cat­e­go­ry of whales stood at 2,025 address­es. This decline can thus be attrib­uted to the steady decline in the price of BTC since its Novem­ber 2021 ATH. How­ev­er, hold­ers of 10,000 to 100,000 BTC and 100,000 to 1,000,000 BTC have been more resilient.

Their counts increased by 15% and 66%, respec­tive­ly, in the last 365 days.

Source: San­ti­ment

Fur­ther, data from San­ti­ment also revealed dor­man­cy on the BTC net­work since the ATH of 10 Novem­ber. A look at the asset’s Mean Dol­lar Invest­ed Age (MDIA) con­firmed this. It has con­sis­tent­ly risen in the past year, indi­cat­ing stag­nan­cy on the net­work. This fur­ther result­ed in a grad­ual decline in the price of the king coin.

Source: San­ti­ment

Through the thick of the cur­rent bear mar­ket, the price of BTC has gone down by over 55% since Jan­u­ary. With the tight­en­ing finan­cial sit­u­a­tion amid a gen­er­al down­turn in the broad­er finan­cial mar­kets, BTC hold­ers have tak­en to sell­ing their assets at a loss to sal­vage their investments. 

As a result, the asset’s Spent Out­put Prof­it Ratio (SOPR) spent more than half of the year below the cen­tral 1  lev­el, data from Glassnode showed. This was an indi­ca­tion that the year so far has been sig­nif­i­cant­ly marked by pan­ic sell­ing of BTC. 

Source: Glassnode

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