Weekend Volatility Awakens Bitcoin Buyers, Active Addresses
December 08 2021 - 2:00PM
NEWSBTC
Following the volatility of the weekend, Bitcoin holders seem to
have woken up as active addresses break one million. Number Of
Active Bitcoin Addresses Reach Seven-Month High As per the latest
weekly report from Arcane Research, the crash during the weekend
woke up sleeping Bitcoin investors as the number of active
addresses observes a significant increase. The “number of active
addresses” is a Bitcoin indicator that measures the amount of
addresses that showed some activity on the chain during a
particular day. If an addresses makes more than one move in a given
day, the metric still only counts it as one active address. Because
of this, the indicator may tell us an accurate picture about how
many BTC holders shifted their coins that day. When the number of
active addresses rise in value, it means market activity is going
up, and previously dormant addresses could be coming back up. This
trend is usually seen around periods of high volatility. On the
other hand, when the indictor’s value goes down, it implies there
aren’t many holders making moves. Such a trend may mean that
investors are currently waiting to see the price make moves before
they shift their positions. It may also simply be because of a lack
of interest in the market at the time Related Reading
| Ethereum Strength Sends Bitcoin Ratio To 2018 Highs Now,
here is a chart that shows the trend in the value of the number of
active addresses over the past year: Looks like the value of the
indicator has been moving up for a while | Source: The Arcane
Research Weekly Update - Week 48 As the above graph shows, the
number of active Bitcoin addresses saw a sharp spike recently. The
crash in the crypto’s price during the weekend was responsible for
this sudden rise in the metric’s value. Currently, the indicator’s
value is above 1 million, the highest it has been in the past seven
months. The last time higher values were seen was back in May,
following the crash. Related Reading | Majority Of Bitcoin
Investors Got In This Year, Says Grayscale As the market cooled
down, there were only about 750k active addresses left by July.
Since the bottom in that month, the indicator has been gradually
rising in value. It’s yet unclear if the current high values will
continue to rise, or if the indicator’s value will once again drop
down as the market calms down from the weekend’s volatility. BTC
Price At the time of writing, Bitcoin’s price floats around $49k,
down 24% in the last month. The below chart shows the trend in the
price of BTC over the past five days. BTC still in consolidation? |
Source: BTCUSD on TradingView Featured image from Unsplash.com,
charts from TradingView.com, Arcane Research
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