The number of wallets that own up to 1 whole #BTC has topped the 1 million mark for the first time.

Centralized exchanges remain king holding over 1.89 million of the circulating 19 million supply of BTC in the market. 

The adoption of digital assets, specifically the two market leaders #bitcoin (BTC) and #Ethereum (ETH), continues to grow with gains recorded this year and a potential pause in interest rate hikes.

According to recent data from on-chain analytics firm, Glassnode, the number of wallets with at least 1 BTC has surged past the 1 million mark for the first time. This is a huge milestone as the top cryptocurrency attempts to reclaim $28,000 after losing that mark earlier this month.

The market downturn of 2022, which saw BTC lose over 55% of its value, lured many investors to add to their holdings. Wallets holding more than 1 Bitcoin surged in mid-June and November after the crash of FTX. Overall, 190,000 wallets grew their portfolio above 1 BTC from Nov 2021 till date.

It should be pointed out that the fact that 1 million addresses own over 1 BTC does not represent 1 million users, as several big investors have more than one crypto address, and digital asset exchanges also hold large amounts of assets. Data from CoinGlass show that of the 19 million BTC in circulation, about 1.89 million are held on major exchanges.

Glassnode sees a bull run on the horizon

Glassnode’s co-founder @Nengentropic urged his followers on the best time to acquire cryptocurrencies in the wake of the new statistics. According to him, users should accumulate “when there is blood in the streets,” signifying a bearish market on the brink of a surge. 

   

#Glassnode also estimated BTC to hit $35,000 in summer as bulls look to capitalize on the current banking sector woes and the signal from the Feds to pause the hike in interest rates, a move which has repeatedly hurt the market as investors move on from risky assets.

BTCUSD Chart by TradingView

On the other hand, BTC seeing fresh dives below $26,700, marking two months’ lows, have left pundits pointing to a correction below $25,500. Despite last week’s fall, BTC already looks stronger after reclaiming $27,300.

source: zycrypto

image source: ai

#CryptoDailyDigest

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

#Bitcoin quotes have reached their highest point since the beginning of the year, breaking key barriers around $28,000, both from a technical (200D MA, 200W MA) and on-chain perspective (coin "cost basis"). This analysis comes from #Glassnode
The breakthrough of these levels has shifted a significant portion of the supply into a positive position, forming the foundation for a renewed upward trend in 2023. These surpassed metrics will serve as crucial benchmarks in the coming weeks, as explained by specialists.
The technical analysis of digital gold is depicted below. The following chart illustrates Bitcoin's price dynamics, along with the True Market Mean Price indicator developed in collaboration with ARK Invest ($29,820).
This indicator reflects the average price at which the last transactions took place, including those that changed hands within a specific timeframe. Historically, Bitcoin has traded half of its "life" above this level and the other half below it. The current price has also exceeded the "traditional cost basis" of coins acquired by speculators. Their "paper" profit has reached around 20%. The chart below shows the #MVRV ratio for this market segment, with red indicating periods when the market traded below the base cost and green indicating periods when it traded above it. A similar pattern emerges with the #SOPR indicator, which characterizes the profitability of spent coins. Just like with MVRV, speculators have started closing their positions in a "positive" territory.
Due to a relatively smaller slump compared to 2021-2022, short-term investors did not experience the same panic and fear typical of the previous bear market in 2022. Analysts view this as a sign of speculators' resilience.
Overlaying the two aforementioned metrics allowed analysts to create an oscillator that reflects investor confidence. At present, the #indicator

has rebounded to a neutral level and is on the verge of entering a positive zone, where the "cost basis" of spent coins will surpass that of Bitcoins held in wallets. The rally in digital gold has put coins held by hodlers into a positive position. Their share has increased from 57% to 81%. In absolute terms, this figure has risen by 4.7 million BTC, equivalent to 24% of the current supply. These metrics provide insight into how many coins were added to wallets within the $27,000 to $35,000 range. The surge in prices did not trigger a strong reaction among long-term investors. The number of coins they own reached a new all-time high of 14.899 million BTC. The ongoing growth of this metric indicates that a larger supply is maturing into "hodler conditions" than is being spent.
Approximately 29.6% of the supply is held at a loss - a historically high value for this metric, considering the strong upward trend in the market since the 2022 lows.
"This suggests that hodlers may be more 'seasoned' and 'resilient' compared to previous cycles," experts noted. The driver of the improved sentiment is the expectation of Bitcoin ETF approval.
On October 23, BlackRock's proposed instrument, iShares Bitcoin Trust, appeared on the DTCC asset list for which the company provides post-trade, clearing, and settlement services.
Recall that Matrixport analysts predicted the rise of digital gold to $42,000-56,000 if the product is approved. CryptoQuant received figures of $50,000-73,000.
Earlier, Glassnode experts, based on an assessment of capital movement between hodlers and speculators, concluded that the current structure of the first cryptocurrency market is similar to the recovery phase after periods of bear dominance in 2016 and 2019.

In the world of cryptocurrency, the last few days have been quite eventful. According to data by Glassnode, the USDC transaction volume has just reached a 5-month low of $323,963,029.87. This is a significant decline from the previous 5-month low of $326,393,674.61 that was observed on 31 March 2023.

@azcoinnews

The USDC is a stablecoin pegged to the US dollar, which means that its value remains stable and predictable. It is used by traders and investors to transfer funds between exchanges, as well as to hold value in times of market volatility. The recent drop in transaction volume could be a result of market participants holding onto their USDC, and waiting for better investment opportunities.

On the other hand, the percentage supply of USDC in smart contracts has just reached a 10-month high of 42.272%. This is a significant increase from the previous 10-month high of 42.222%, which was observed on 14 September 2022.

@azcoinnews

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This increase in the percentage supply of USDC in smart contracts indicates that more market participants are using the stablecoin to invest in decentralized applications.

In addition, Santiment, a market intelligence platform, has reported that the combined buying power for USDT, USDC, BUSD, DAI, and USDP is $126.3 billion. The decline in buying power has tapered off this week, which could signal a major increased probability of Bitcoin rising.

@azcoinnews

The first quarter of 2023 has been a good one for the recovering cryptocurrency markets, and a rise in buying power could further strengthen the market. However, it is important to remember that the cryptocurrency market is highly volatile and subject to fluctuations, so investors should exercise caution and do their due diligence before making any investments.

The recent developments in the cryptocurrency market have been noteworthy, with the USDC transaction volume reaching a 5-month low, the percentage supply of USDC in smart contracts reaching a 10-month high, and the combined buying power for stablecoins remaining strong.

#Santiment #Glassnode #azcoinnews #Stablecoins #USDC

This article was republished from azcoinnews.com

Bitcoin investors and enthusiasts are celebrating as the cryptocurrency experiences one of the best performing weeks of price action in history.

According to Glassnode’s weekly report, Bitcoin has closed up 35.8% in the week, a remarkable feat that has been achieved only 124-trading days in history. The report further highlights that just 16 days have seen a larger 7-day upside rally, with almost all instances occurring within bull market trends, typically near the later stages of the run.

This impressive performance by Bitcoin is coming at a time when traditional financial and banking systems are experiencing challenging conditions. Concerns over the vulnerability of smaller banks in the digital era have raised alarm bells, leading to the establishment of new liquidity funding facilities between the US Federal Reserve, US banks, and swap lines with other central banks.

Despite the challenging environment, investors are reacting positively to the Bitcoin market. The monthly average of transaction counts has hit 309.5k/day, which is the highest level since April 2021, and significantly above the yearly average. This is a healthy sign, with fewer than 12.2% of all days seeing more transaction activity for Bitcoin.

Using advanced clustering algorithms, Glassnode estimates the number of unique new entities operating on-chain as the best estimate for unique new users. This metric has reached 122k new entities/day, with just 10.2% of days seeing higher new user adoption rates, mainly during the 2017 peak and the 2020-21 bull run.

As a result, network congestion is climbing, putting upwards pressure on transaction fees. Bolstered by a new demand from Ordinals and Inscriptions, the 2yr Z-Score for miner revenue from fees has turned positive.

This influx of new users is a common precursor to more constructive markets, coinciding with new waves of adoption expressed via increasing demand for blockspace. Miners are also benefiting from this influx, seeing their total revenue spike up to $22.6M/day. This week, miner revenues have lifted to the highest level since June 2022, breaking convincingly above the yearly average.

Source: Glassnode

In conclusion, the Bitcoin market appears to be shifting gears, moving out of deep bear market territory and towards a structure resembling past early bull markets. With investor sentiment and adoption rates increasing, the future of Bitcoin looks bright, and it will be interesting to see how it performs in the coming weeks and months.

#Bitcoin #BTC #Glassnode #TechnicalAnalysis #azcoinnews

This article was republished from azcoinnews.com

Bitcoin continues to be a hot topic in the world of finance, with its supply distribution being closely monitored by experts and critics alike. According to a recent report by Glassnode, BTC ownership is being dispersed over time, and is much less concentrated than previously reported. The report provides an update on the growth and contraction of supply held by defined entity cohorts, and provides remarks on the distribution of the circulating supply as it stands today.

The report states that an increasingly large proportion of supply is held by smaller entities, such as Shrimps (< 1BTC) and Crabs (< 10 BTC), which have absorbed a remarkable 2.25x more coins than were mined in 2022.

Institutional adoption post March 2020 is visible on-chain across several wallet cohorts, with balances showing signs of being increasingly market-driven (i.e. swelling/contracting with price). Entities with a balance between 10 and 1k BTC are absorbing coin volumes equivalent to 100% of issued coins in 2022.

The report also indicates that exchange reserves continue to deplete in aggregate, especially following the collapse of FTX. This is a combination of both renewed demand for self-custody, but also the expansion of institutional and collaborative custody solutions, and exchange-traded products like GBTC.

To better understand the distribution of BTC ownership, Glassnode divided network entities according to their Bitcoin holdings. The cohorts include Shrimps (<1 BTC), Crab (1-10 BTC), Octopus (10-50 BTC), Fish (50-100 BTC), Dolphin (100-500 BTC), Shark (500-1,000 BTC), Whale (1,000-5,000 BTC), Humpback (>5,000 BTC), Exchanges and Miners.

The report provides a summary of the state of the relative ownership of the Bitcoin supply approximately two years after the original article was published. The data shows that the smallest entities (Shrimps to Octopus) saw relative growth, while Whales, Miners, and Exchanges experienced the largest contractions in supply share.

In addition to assessing the change experienced by each cohort since February 2021, the report explores changes in the relative distribution of supply by way of a new metric, the Yearly Absorption Rate. This tool provides a relative measure of balance change relative to the volume of newly minted coins over the last year, providing insight into the level of expansion/contraction a cohort has experienced relative to new supply entering the market.

Overall, the report provides an in-depth analysis of BTC supply distribution and how it has changed over time. It highlights the increasing dispersal of BTC ownership, particularly among smaller entities, and the impact of institutional adoption and custody solutions on the distribution of BTC supply. The report serves as a valuable resource for those seeking to better understand the dynamics of BTC ownership and supply distribution.

#BTC #Bitcoin #Glassnode #crypto2023

This article was republished from azcoinnews.com