cryptodailytrading.com

Number of Active Bitcoin Addresses Continues to Grow While BTC Price Remains in Limbo

  • Alex Morris
    📊‍ Infographics

    💪💥There is a divergence between new addresses and the BTC price, but it doesn’t mean that another bull run is coming anytime soon


Number of Active Bitcoin Addresses Continues to Grow While BTC Price Remains in Limbo
You may also like:
Contents

There has been a common belief that the number of active Bitcoin addresses and the asset’s price are somehow correlated. However, it turned out not to be the case after the latter continued to stagnate despite the Bitcoin user base growing significantly over the last eight weeks.

👉MUST READ Anthony Pompliano Claims There is No Correlation Between Bitcoin and Stocks
Anthony Pompliano Claims There is No Correlation Between Bitcoin and Stocks

Little impact on price

While the number of Bitcoin addresses increased by 17 percent since Jan. 20 till March 17, the Bitcoin price only experienced minuscule growth of 1 percent over the same period of time. The fact that there is a divergence between the number of addresses and the Bitcoin price doesn’t necessarily mean that another bull run is in the offing. In fact, there was steady growth in active addresses during the prolonging bear market (since 2014 till 2016), and it didn’t impact the price.

👉MUST READ Here’s How Much Bitcoin North Korea Amassed After Hacking Asian Cryptocurrency Exchanges
Here’s How Much Bitcoin North Korea Amassed After Hacking Asian Cryptocurrency Exchanges

The TAAR metric  

Transaction volume is a more reliable metric when it comes to determining the tops and bottoms of the Bitcoin market. However, in order to get the most precise correlation, one has to factor both average trading volumes and the number of active users (the TAAR metric). The TAAR tends to be a fairly accurate indicator of an upcoming bullish/bearish trend. 

The TAAR metric  

 

Cover image via u.today
Only the most important posts per day. Infographics, analytics, reviews & summaries. Follow us on Facebook!
👓 Recommended articles

Institutional Interest in Bitcoin Continues to Grow: Report

  • Alex Morris
    📊‍ Infographics

    Institutional Bitcoin trading volumes have been on the rise since the beginning of April, but there is only one winner in this game
     


Institutional Interest in Bitcoin Continues to Grow: Report
You may also like:
Contents

According to a new study published by Blockchain research firm Diar, institutional Bitcoin trading volumes are growing for the fourth consecutive month. The fact that the number of CME futures contracts skyrocketed since the beginning of April is the icing on the cake.

👉MUST READ Coinbase Sets Sights on Asian Institutional Investors
Coinbase Sets Sights on Asian Institutional Investors

CME’s dominance

 As reported by U.Today, CME Bitcoin futures saw their daily trading volume increase by a whopping 950 percent with 22,542 contracts on Apr. 4. In fact, the sudden rise in Bitcoin price was linked to the expiration of CME futures.  

So far, that level of interest remained steady with 11,873 contracts traded on Apr. 11.


Institutional Interest in Bitcoin Continues to Grow: Report

👉MUST READ Wall Street Titan Mike Novogratz Thinks Institutional Money Will Make Bitcoin Price Skyrocket
 Wall Street Titan Mike Novogratz Thinks Institutional Money Will Make Bitcoin Price Skyrocket

The only winner

With CBOE pulling the plug on Bitcoin futures due to its inability to compete with its Chicago-based rival CME, there is a clear winner in this race. While Diar calls CBOE ‘the biggest loser’, Grayscale's Bitcoin Investment Trust (GBTC) is not exactly on the winning side, either. It now accounts for 24 percent of the market, lagging behind CME (a far cry from its 50 percent market share back in January 2018).

👉MUST READ Fidelity’s New Unit to Tap Institutional Investors’ Appetite For Crypto
Fidelity’s New Unit to Tap Institutional Investors’ Appetite For Crypto

New heights

The dominance of institutional products has been steadily rising since January. As of April, institutional money is responsible for 19 percent of the total Bitcoin trading volume (almost 8 percent more than during the market peak in January 2018). However, it has yet to match its 24 percent market share that was recorded in July.

Cover image via u.today
The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
👓 Recommended articles