- Bitcoin’s active addresses defy expectations, setting a new record and potential market shifts.
- Bitcoin long-term holders are rising to an all-time high, with implications for future price dynamics.
A recent departure from one of Bitcoin’s [BTC] important metrics that can significantly influence the price trend have just been observed according to new data. This unexpected shift has caught the attention of both investors and analysts trying to decipher its implications for the cryptocurrency’s trajectory.
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In addition, some reports suggest that a gradual shift in BTC holder behavior was influenced by the collapse of FTX. Coins that have not been spent since the incident are slowly becoming part of long-term ownership.
Bitcoin active addresses set a record
Like many other financial assets, Bitcoin is subject to trends and patterns that can provide insight into price movements. New data from Cryptoquant has revealed a fascinating twist in Bitcoin’s pattern of active addresses.
The chart indicated that the price of Bitcoin tends to rise after a drop in hash rate when the number of active addresses exceeds a certain range. For most of this year, the number of active addresses fell between 900,000 and 1.1 million addresses per day.
However, on May 1, the pattern collapsed. The number of active addresses skyrocketed to a new record of nearly 1.3 million – the highest figure in more than a year.
The increase in active addresses suggests a possible shift in market dynamics, sparking interest and speculation among traders and analysts alike.
Source: CryptoQuant
Post-FTX Bitcoin is shifting into long-term positions
In the aftermath of the collapse of the FTX, an intriguing phenomenon was observed: a gradual accumulation of unused BTC. These coins, which have been left untouched for a period of more than 155 days, tend to move into long-term ownership (LTH).
Dates from Glasnode revealed a whopping 14.3 million coins that fall under this category. Also, this accumulation propelled the number of long-term holders to an all-time high, representing a remarkable 74% of the circulating supply.
Possible trigger for the address metric
The disruption in the pattern of active addresses can be partly attributed to the enthusiasm surrounding the Ordinals craze.
In addition, data from Dune Analytics indicated that daily enrollments saw a significant increase on April 1. The increase coincided with the day the active address statistic hit its highest point in nearly a year.
This suggested a correlation between the influx of new entrants and the spike in active addresses.
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Implications of LTH Activation
Additionally, with the shift in the long-term holding (LTH) threshold, about 26% of the total Bitcoin supply was currently active. This implied that long-term investors owned a significant portion of Bitcoin.
Also the It is important to consider the potential impact if these long-term positions were introduced for trading. The influx of such a huge supply could cause a price drop.
