In recent years, the world has witnessed an explosion in the popularity of cryptocurrencies, especially Bitcoin. Despite its volatile nature, Bitcoin has continued to attract investors who believe in its potential as a store of value and an alternative to traditional financial instruments. As a result, tracking Bitcoin’s on-chain data has become a popular way of monitoring the health of the cryptocurrency market.
Recently, CryptoQuant, a popular on-chain data analytics platform, released new data on Bitcoin’s on-chain highlights, providing insights into the current state of the cryptocurrency. According to the data, Bitcoin’s Stablecoin Ratio has “Returned to May 2022” levels.
This is an important metric because it measures the potential purchasing power of Bitcoin. When the ratio value is low, it means there is a high ability to buy additionally. The current indicator suggests that the Buy & Hold portion has increased, meaning that current buying sentiment has improved significantly, in contrast to the second half of 2022.
In addition, the data also reveals that Bitcoin’s Realized Price has found a support line in the March 10 drop. This means that when Bitcoin fell sharply due to issues in the banking sector, including Silvergate, it fell to near the realized price but was supported and rebounded, suggesting that Bitcoin investment sentiment is solid among risky assets. This is a positive sign for investors who are holding Bitcoin for the long term.
Another important metric provided by CryptoQuant is the Distribution of Bitcoin by UTXO Period (Based on Realized Price). This metric shows the average purchase price by coin holding period and reveals that most new buyers in the last week are profit rights. Specifically, the data shows that buyers who have held Bitcoin for 0 days to 1 day have an average purchase price of 26,556 USDT, while buyers who have held Bitcoin for 1 day to 1 week have an average purchase price of 23,808 USDT.
Overall, the new data released by CryptoQuant provides valuable insights into the current state of the Bitcoin market. While the cryptocurrency market is notoriously volatile, these metrics suggest that there is a positive sentiment among buyers and investors, which is likely to support the cryptocurrency’s growth in the coming months.
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This article was republished from azcoinnews.com
