1/ #Bitcoin fundamentals are stronger than ever.
As the halving approaches, let's zoom out and look at how on-chain fundamentals have developed historically, and how they compare to the last halving.
TL;DR – Network fundamentals are compelling; long-term bullish $BTC
THREAD 👇
As the halving approaches, let's zoom out and look at how on-chain fundamentals have developed historically, and how they compare to the last halving.
TL;DR – Network fundamentals are compelling; long-term bullish $BTC
THREAD 👇
2/ NETWORK GROWTH
The number of #Bitcoin addresses is steadily increasing and currently at ATH. It recently crossed the milestone of 30 million addresses.
That's an increase of +234% since the last halving four years ago.
The number of #Bitcoin addresses is steadily increasing and currently at ATH. It recently crossed the milestone of 30 million addresses.
That's an increase of +234% since the last halving four years ago.
3/ GROWTH RATE
Not only is the network increasing, but so is the pace it which it grows.
The current growth rate (daily number of addresses added to the #Bitcoin network) is over 68% higher than compared to last halving four years ago.
Not only is the network increasing, but so is the pace it which it grows.
The current growth rate (daily number of addresses added to the #Bitcoin network) is over 68% higher than compared to last halving four years ago.
4/ "RETAIL" ADDRESSES
Number of #Bitcoin addresses holding at least 0.01 $BTC and 0.1 $BTC are hitting new ATHs in 2020 almost on a daily basis.
These addresses have increased by over 204% and 142% since the last halving, respectively.
Number of #Bitcoin addresses holding at least 0.01 $BTC and 0.1 $BTC are hitting new ATHs in 2020 almost on a daily basis.
These addresses have increased by over 204% and 142% since the last halving, respectively.
5/ WHOLECOINERS
The number of #Bitcoin addresses holding at least 1 $BTC has shown a steady increase over the years. With over 800,000 addresses it is currently at ATH.
There are roughly 64% more wholecoiner addresses today than during second halving in July 2016.
The number of #Bitcoin addresses holding at least 1 $BTC has shown a steady increase over the years. With over 800,000 addresses it is currently at ATH.
There are roughly 64% more wholecoiner addresses today than during second halving in July 2016.
6/ WHALES
Both the number of #Bitcoin addresses and entities holding ≥ 1,000 $BTC are well on their way to reach new ATHs in 2020.
Even though the increase since the last halving is not significant, it's important to note that the USD value they hold is more than 10x higher.
Both the number of #Bitcoin addresses and entities holding ≥ 1,000 $BTC are well on their way to reach new ATHs in 2020.
Even though the increase since the last halving is not significant, it's important to note that the USD value they hold is more than 10x higher.
7/ NETWORK ACTIVITY
Daily number of active #Bitcoin addresses and entities has been steadily increasing since three years, approaching the ATHs of the bull market in 2017.
Both numbers have increased by over 55% since the last halving four years ago.
Daily number of active #Bitcoin addresses and entities has been steadily increasing since three years, approaching the ATHs of the bull market in 2017.
Both numbers have increased by over 55% since the last halving four years ago.
8/ VOLUME
Daily #Bitcoin on-chain volume (USD) as been constantly high since 2017, indicating sustained network usage. Lack of larger increases is imo an indication of increased HODL behaviour and the SoV narrative.
Who wants to actually spend their bitcoins today?
Daily #Bitcoin on-chain volume (USD) as been constantly high since 2017, indicating sustained network usage. Lack of larger increases is imo an indication of increased HODL behaviour and the SoV narrative.
Who wants to actually spend their bitcoins today?
9/ MINERS
Miner capitulation? Nothing further away from the truth.
Hash rate has significantly increased every single year throughout #Bitcoin's history, constantly adding to the network's security.
Today's hash rate is up more than 6800% since the last halving.
Miner capitulation? Nothing further away from the truth.
Hash rate has significantly increased every single year throughout #Bitcoin's history, constantly adding to the network's security.
Today's hash rate is up more than 6800% since the last halving.
10/ BLOCKS
#Bitcoin simply works – like a clockwork. It's astonishing to see how the system's mechanisms continue to function as intended.
Over the years blocks have been produced, on average, with a staggering constant frequency – just as designed.
#Bitcoin simply works – like a clockwork. It's astonishing to see how the system's mechanisms continue to function as intended.
Over the years blocks have been produced, on average, with a staggering constant frequency – just as designed.
11/ Yes, #Bitcoin remains a volatile asset and short-term price action is still subject to large drops.
But zooming out, Bitcoin's fundamentals keep on painting a strong and unambiguously bullish picture.
Investors with a long-term horizon and low time preference know this.
But zooming out, Bitcoin's fundamentals keep on painting a strong and unambiguously bullish picture.
Investors with a long-term horizon and low time preference know this.
12/ All data presented here is obtained through @glassnode's API, and can be found on studio.glassnode.com.
Not financial advice – do your own research.
Not financial advice – do your own research.
