BTC On-Chain Analysis December
Key Insights
- Increased activity of the participants of the Bitcoin network is detected
- The diversity of interest in Bitcoin is observed further
- Noted is the rise of transaction volume, notably above $10 million
In this article, we look into the Bitcoin network analysis in December 2023 exploring BTC transaction volume, BTC total addresses, and BTC balance by holdings and using Bitcoin Cycle Master as metrics.
BTC Transaction Volume in USD by Size
The rise in Bitcoin network transactions correlates with the appreciation of BTC, increasing from 372.05 thousand in December to 731.35 thousand.
This trend suggests heightened activity among Bitcoin network participants. This may be attributed to the rising interest in this asset, which is a result of the increasing BTC value and the growing attention towards the cryptocurrency market.
BTC Total Addresses
As seen on the following chart there has been a surge in transaction volume on the Bitcoin network, with users carrying out transactions exceeding $10 million.
Since early December, the number of Bitcoin addresses has steadily increased from 50.04 million to the current 51.74 million. This growth may indicate a steady increase in the number of participants in the Bitcoin network, which can be attributed to the growing interest in the cryptocurrency and the expansion of its user base amid the pending adoption of BTC: ETP.
BTC Balance by Holdings
The BTC analysis shows that there is an increase in the balance of BTC holders.
The changes are manifested in the following way:
Increase in the interest of small holders (0 - 0.001 BTC): +2.49%
Increase in the share of large holders (10k - 100k BTC): +2.33%
Increase in the share of the largest holders (> 100k BTC): +0.41%
These data indicate a variety of changes in the structure of BTC holders, with both small and large holders showing increased interest in the asset.
ВТС Bitcoin: Bitcoin Cycle Master
Based on the Bitcoin Cycle Master metric, the current BTC price appears to be at fair market value.
This suggests that the market is valuing bitcoin according to its fundamental characteristics, without any clear overvaluation or undervaluation of the asset. The market price reflects its current value, taking into account the factors identified by the Bitcoin Cycle Master.
Summary
- Increase in the number of transactions
The on-chain data demonstrates that there is an increase in the number of transactions on the Bitcoin network, accompanied by a rise in the asset's value, indicates heightened activity among participants. This trend can be linked to the growing interest in cryptocurrencies, highlighting the potential resilience of BTC price growth.
- The USD transaction volume has also increased
An increase in transaction volume on the Bitcoin network, particularly for amounts exceeding $10 million, indicates heightened activity by major market participants. This could suggest confidence in the cryptocurrency as a means for large transactions, potentially contributing to its long-term viability.
- Growth in the number of addresses
The growth in the number of Bitcoin addresses reflects an increase in the number of participants on the network.This can be attributed to the increasing interest in the cryptocurrency and highlights its perception as a valuable asset in the digital economy.
- Growth in the balance of BTC holders
The increasing balance among Bitcoin (BTC) holders, regardless of their size, demonstrates the diversity of interest in cryptocurrency. The growing interest from both small and large holders may emphasize the long-term sustainability and commitment of market participants.
- Bitcoin Cycle Master
Based on the Bitcoin Cycle Master metric, the asset's price is in line with the fair market value. This provides investors with a signal that the market is valuing Bitcoin according to its fundamental characteristics. This is an important factor for those considering a long-term investment.
Current Bitcoin analysis and the growth in online activity along with the increasing number of participants support the idea that Bitcoin represents a promising asset for long-term investment. The balanced interest of cryptocurrency holders further supports this view.
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