Bitcoin Bulls Getting Excited as Key On-chain Metrics Trend Higher – Further BTC Price Rally Incoming?
Bitcoin bulls are licking their lips as they look at various widely followed metrics of on-chain activity. The world’s first cryptocurrency and largest by market capitalization is already up over 40% this year, but that rally could extend in the months ahead if positive on-chain trends continue, assuming macro headwinds as the US Federal Reserve continues to tighten monetary policy don’t get too severe.
According to data presented by crypto analytics firm Glassnode, the 14-day Exponential Moving Average (EMA) of the number of active addresses interacting with the Bitcoin network was at around 975,000 on Wednesday, having trended higher consistently since ending last year well under 900,000. If this metric can continue to rise and push above 982,000, active addresses would be at their highest since last May. The number of active addresses on the network can be seen as a rough proxy for BTC demand.
Elsewhere, the 14-day EMA of the number of transactions taking place on the network recently came close to its highest levels since early 2021 when it nearly hit 305,000 on Wednesday. That’s an approximate 50,000 rise since the end of 2022. Rising transaction numbers can also be used a rough proxy for a rise in BTC demand.
Likewise, the 14-day EMA of new Bitcoin addresses being created recently rose close to its highest since mid-2021, clocking in at 459,000. That’s up around 40,000 since the end of December. An acceleration in the number of new addresses interacting with the Bitcoin network suggests an acceleration in Bitcoin’s “adoption”, another proxy for demand.
The rise in the rate at which new addresses are being created can also be seen in the recent uptick in the number of Bitcoin addresses holding a non-zero balance, which
Read more on cryptonews.com
