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- Wallets carrying a non-zero quantity of Bitcoin hit a new high here (around 40.137 million). Despite the crypto’s price plummeting from its all-time high of $69k
- Transactions worth $10 million or more accounted for 45 percent of all settled activity. transaction sizes greater than $1 million accounts for more than 70% of all settled volume (on an entity-adjusted basis)
- Surprisingly, current market prices are falling (bearish), but illiquid supply is increasing dramatically (bullish). Over 0.27 percent of the supply (51k BTC) was changed from Liquid to Illiquid status this week alone
Bitcoin, the world’s most valuable cryptocurrency, is still trading below $40k, with many speculating that the crypto-winter has arrived. Indeed, some analysts predict that crypto-volatility will stay high this month. Particularly if investors minimize their exposure to hazardous assets. Some indications, however, appear to be delivering much-needed bullish relief to counteract the mounting fears.
The Bear Confronts The Bull
Glassnode, a blockchain analytics firm, released its weekly report this week to highlight these positive scenarios. Bitcoin’s on-chain fundamentals, meanwhile, pointed to bullishness. The recent market drop, as per the same, will not persist long. To begin with, the report used the illiquid supply of Bitcoin as a statistic to emphasize the story. Despite market depreciation, the metric has risen on the charts in recent years.
Surprisingly, current market prices are falling (bearish), but illiquid supply is increasing dramatically (bullish). Over 0.27 percent of the supply (51k BTC) was changed from Liquid to Illiquid status this week alone. Within the context of a macro bearish background, this raises the question of whether a bullish supply divergence, like that seen in May-July 2021, is in play.
It also takes Bitcoin’s NVT into account (Network Value to Transaction). It was bouncing back and forth between the ‘faster 28-day (green) and slower 90-day (pink) NVT price models.
Glassnode claims that the ‘NVT Premium,’ which is currently selling at low points that are historically deemed cheap, is calculated by dividing the price by the 90-day NVT price. Settlement volumes this large in relation to market cap have previously foreshadowed strong positive impulses in bear markets, or at macro market bottoms, such as December 2018 and March 2020.
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Wallets Carrying A Non-Zero Quantity Of Bitcoin Hit A New High Here (Around 40.137 Million)
In addition, a few more indicators backed up the previously indicated data. For example, on Glassnode, an indication such as wallets having a non-zero balance. Wallets carrying a non-zero quantity of BTC hit a new high here (around 40.137 million). Despite the crypto’s price plummeting from its all-time high of $69k, the indicator’s upward trend has been maintained. Furthermore, transactions worth $10 million or more accounted for 45 percent of all settled activity.
On the contrary, transaction sizes greater than $1 million accounts for more than 70% of all settled volume (on an entity-adjusted basis). Throughout 2021, large-scale deals maintained their dominance. Surprisingly, it actually rose during the course of the adjustment. It’s worth mentioning, though, that Bitcoin was still in the negative at the moment of typing, down 1% in a 24-hour period. Whether or whether there are bullish indicators, BTC is still searching for catalysts to maintain a breakthrough above $40,000.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
