Advertisement
AD

Main navigation

Bitcoin (BTC) Dormancy Flow Indicator at Lowest Since 2010: Why Is This Crucial for Crypto?

Advertisement
Tue, 14/06/2022 - 16:46
Bitcoin (BTC) Dormancy Flow Indicator at Lowest Since 2010: Why Is This Crucial for Crypto?
Cover image via unsplash.com
Read U.TODAY on
Google News
Contents
Advertisement

Pseudonymous cryptocurrency analyst @TXMCtrades, host of the Alpha Beta Soup YouTube show on blockchain and cryptocurrencies, demonstrates the unusual pattern of Bitcoin (BTC) activity in this bear cycle.

Dormancy Flow is already lower than in all previous bear markets

According to the chart shared by @TXMCtrades on Twitter, the Entity Adjusted Dormancy Flow, one of the most interesting Bitcoin on-chain indicators, drops to the levels of October 2010.

This is one of the so-called "lifespan indicators" that demonstrates how many coin days are destroyed per transaction on a specific day. Simply put, it is a derivative from on-chain activity level that occurs between accounts.

As such, this metric has been falling since Q1, 2021. In mid-June 2022, it dropped below the levels registered prior to the legendary 2011 BTC price rally, a first breakthrough in the history of digital gold.

That said, the Bitcoin (BTC) network has not been so quiet since the days when orange coin was trading below $0.2; it has rallied over 345,000 times since.

Bitcoin activity moves out of ledger

This dropdown should be attributed to two groups of catalysts. First, network activity might have actually dropped: long-term holders are keeping their riches since early 2021.

However, the ecosystem of crypto-based financial products grows day by day. The activity on derivatives markets and CEXes is invisible for on-chain analysis instruments.

So, this could also be interpreted as evidence of the maturation of the web3 segment as an economic and infrastructure category.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD