A number of cryptocurrencies are currently trading in the red and Bitcoin (BTC) recently hit a two-year low.
In such an exceptional bear market situation, the FTX crisis has only acted as fuel to fire and caused widespread distrust among the crypto participants, making them wary of investing any longer. Bitcoin is getting closer to a critical threshold, which might determine the market’s short-term direction. Despite some bullish signals on the technical charts, it is still too early to say whether a new bullish phase is approaching.
Active Addresses Surge
A highly reliable analytics company– IntoTheBlock- has noticed a stabilization in the number of BTC and ETH active addresses, which suggests that more people are using the top two cryptocurrencies now.
According to IntoTheBlock, one important metric is flashing a bullish signal for Ethereum and Bitcoin. After assets marked their ATH in May 2021, there was a decline in daily addresses for Ethereum and Bitcoin. The active addresses have now quickly stabilized and maintained constant levels ever since.
“We see around a 36% increase in active addresses for Ethereum (327,000 addresses on March 8th, 2020 compared to 514,000 addresses on December 1st, 2022). Bitcoin has seen more modest gains with about [a] 20.6% increase in active addresses (826,000 on March 9th, 2022 compared to 1.04 million on December 1st, 2022).”
The market intelligence company keeps track of daily active addresses, which counts the number of wallets that have completed at least one transaction each day. According to them, wider adoption is indicated by more active addresses. The analytics company also stated that despite the unsettling macroeconomic situations, the number of active addresses for BTC and ETH has remained stable.
Miner’s Holdings Reduce
However, Glassnode data shows that miners’ BTC reserves have dropped by 13K BTC over the past several months; it is now at 1,818,280.032 BTCs, a 14-month low. In October of last year, the price reached a 14-month low of 1,818,778.794. Moreover, due to a reduction in mining activity, Bitcoin’s hash rate has been decreasing as well.
According to on-chain data on short-term inflows and outflows from Miners’ wallets, there were a lot of outflows in November. It can result in a decrease in price or a rise in volatility. Miners sold over 6,000 Bitcoins the previous week and 10,000 this week.