BTC Analysis March
Bitcoin: Number of Active Addresses
Over the past 6 months, the rise in the value of BTC has not led to significant changes in the number of active addresses, which at the time of writing is in the range of 700k to 1,150,000.
The graphs here and below are taken from Glassnode.
Most likely, the rise in the BCT price is mainly driven by speculative factors. The lack of a significant increase in the number of active addresses under such conditions may mean that at this point, most investors prefer to hold their funds in BTC for the long term, rather than actively trade.
The BTC pump amid problems with banks in the US may be due to the fact that some investors have decided to use crypto as a hedge against potential economic risks associated with the banking system. However, such pumps may be temporary. After the situation with the banking system improves, the demand for BTC may decrease.
Bitcoin: Number of New Addresses
From January to March, the number of new BTC addresses gradually increased. In March, we observed a gradual decrease in the number of new addresses, despite the fact that the BTC price continuously grew.
This may mean that current market players increase their positions in BTC without attracting new participants. Perhaps the coin holders are confident about the further growth of price and would like to maintain their position in the market.
Bitcoin: Number of Transactions
From January to March, the increase in the price of BTC was accompanied by an increase in the number of transactions. In March, despite the continued rise in prices, the number of transactions decreased.
A decrease in the number of transactions while the price continues to rise may indicate an increase in the volume of large transactions. A lower number of regular transactions usually indicates a reduction in the use of BTC as a means of payment and an increase in the speculative component of the market.
Bitcoin: Balances on Exchanges
Since the beginning of January, the BTC balance on the exchanges has remained virtually unchanged, while the BTC price has continued to grow. During price corrections on the stock exchanges, there was a decrease in balances. In March, the balances on the exchanges gradually decreased, but the price of BTC would only grow.
Presumably, investors stop selling their coins on the exchange and prefer to hold BTC in the long term, perhaps, again, expecting further growth in the price of BTC.
Users can get BTC for fiat or other crypto on SimpleSwap.
Bitcoin: Mean Hash Rate
The growth of the hash rate since the beginning of the year indicates that miners continue to invest money and resources in BTC mining. This most likely indicates an increased interest in cryptocurrency and faith in its long-term potential.
The overall conclusion based on metrics over the past 6 months suggests that BTC continues to rise in price. However, some metrics, such as the number of new addresses and the number of transactions, do not grow as quickly. The growth in hash rate and the continued investment in mining indicate that market participants believe in the long-term potential of cryptocurrency in general.
In addition, the stability of the BTC balance on the exchanges may indicate that investors and traders aim at long-term holding of crypto, rather than short-term speculation.
Overall, the outlook for BTC based on metrics looks positive.
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