1/9 Bitcoin has performed remarkably these past few weeks despite:
-Most of DeFi falling 50-80%
-CFTC charging BitMEX
-POTUS contracting Covid
-Delayed stimulus talks
-FCA announcing a derivative ban for retail
Why? Let’s see what we can find on-chain
2/9 Bitcoin’s Realized Cap has been steadily increasing just as it did before the 2017 bull market took off. If it continues as it did in 2017, 2021 should be an interesting year.
4/9 Looking at the supply of Bitcoin on exchanges is a good indication as to whether or not users are increasing trading activity, or increasing hodl activity. With supply reducing it looks like the tendency recently has been driven by hodlers
5/9 Despite the recent volatility, the number of Bitcoin whales continues to increase, indicating the growing number of large holders that have positive expectations for the future of Bitcoin
6/9 There have only been 6.8m BTC, or 36.7% of total supply, that have been active in the last year. Whilst the total supply of Bitcoin continues to grow, the free float and active supply indicate that scarcity might be higher than some may expect
7/9 Most of the post March activity in Bitcoin has not been led or followed by increases in Days Destroyed (the re-activation of long term held Bitcoin), further supporting the idea that long term holders are expecting the medium term price action to be positive
8/9 Bitcoin Transfer count continues to grow steadily, indicating the user base/usage of the network is increasing in a healthy fashion
9/9 All this to say we like what we are seeing on-chain from a fundamental growth perspective! (and think @Square and @michael_saylor might too 😉)
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Chainlink has continued to perform extremely well since early 2019, briefly surpassing $8.00 per $LINK this morning.
Below we take a look at on-chain metrics to see how they stack up in recent times
Both Active Addresses and Transaction Count are up in lockstep, indicating that not only is usage up, but the number of users of the network is growing too
The Adjusted Transfer Value (7dma) has started to spike, surpassing 2020 previous highs, but still a way off mid-2019 all-time highs
On May 10, Coin Metrics’ internal systems fired off an alert that an abnormally large deposit took place on @Gemini. An hour later, markets fell almost 16%
Below we investigate the insights that holistic data strategy could provide during such an event medium.com/@coinmetrics/m…
2/ An hour after 2,500BTC was deposit onto @Gemini, CM noticed more abnormal activity on Gemini, this time in the form of an unusually large 50 $BTC trade. This potentially triggers a few significant market sells on Bitfinex and @coinbase Coinbase in the following seconds.
3/ In the following 5 minutes, there is a significant increase in trade volume across all exchanges, resulting in #Bitcoin's price dropping $800 over the period
For only the fourth time in history, BTC MVRV has dropped below 1. In hindsight, the past periods where MVRV dropped below 1 have been the best times to accumulate BTC at a relatively discounted price.
The large drop in MVRV is because the BTC market cap dropped 46% over the last 7 days, while the realized cap has only dropped 3%
The relatively small drop in realized cap signals that for the most part, longer-term holders are staying strong, and that the recent price action is likely driven by newer buyers.
As part of our normal due diligence when adding new assets to CM Network Data Pro, CM found several discrepancies between what has been publicly reported by Ripple and what was visible on the XRP ledger.
1. Two quarterly markets reports under-reported the number of XRP released from escrow by a total of 200 million XRP ($84 million at current prices)
2. The “escrow queue” is implemented differently than announced, leading to a faster future release of escrowed funds compared to the announced schedule