- Active addresses reached the one million mark on June 6 and 7.
- Traders’ positions suggested optimism for BTC’s price.
The number of active addresses with which transactions are performed Bitcoin [BTC] reached one million for two consecutive days, on June 6 and June 7, according to Santiment.
With market-wide volatility rising, #BitcoinThe level of usability has increased quite drastically. The number of unique addresses interacting on the $BTC network has passed 1 million in the past two days, the first time since April 21. https://t.co/QVfRuwUwXQ pic.twitter.com/k1jvEXDi7G
— Santiment (@santimentfeed) June 8, 2023
How many Worth 1,10,100 BTCs today?
Skepticism drives the act
While active addresses showed the number of unique senders and recipients, the increase did not entirely imply that these participants purchased BTC.
While this suggested significant activity for Bitcoin, it leaned more towards investor action to move assets away from exchanges and into self-custody.
Recently, Binance and Coinbase, two of the world’s largest exchanges with high trading volumes, received court filings from the US SEC. This resulted in a high outflow from both platforms.
Despite the challenges and an initial downturn, BTC didn’t get over it the $25,000 mark. Also, the regulatory issues and increase in transactions increased Bitcoin’s social dominance.
Social dominance shows the share of discussions in the crypto community associated with an asset. The increase therefore means that attention to the BTC increased. While the statistic was down at the time of writing, weighted sentiment also followed the same path.
Source: Sentiment
Used as a measure of investor perception of an asset, the Bitcoin weighted sentiment increased to 1.45 on June 6. However, it had fallen to -0.91 at the time of writing, indicating a dip in optimism around the coin.
Open interest decreases
In the derivatives arm of the market, Bitcoin’s Open Interest (OI) fell. The OI serves as an indicator of interest in opening futures or options contracts for an underlying asset.
If the OI increases over time, it means that traders are opening more positions. But since the drop, it signaled how traders exited postins and took liquidity out of the market.
Source: Coinglass
Regardless of the exits, most traders are still looking for potential profits chosen go long. This inference was indicated by the funding rate. Usually, a positive funding rate indicates that long-positioned traders are willing to keep their contracts open by paying short.
But when the funding rate is negative, it means that more short positions were open and outperformed their long counterparts.
Source: Sentiment
Realistic or not, here it is BTC’s market cap in ETH terms
In another development, ArkInvest CEO Cathie Wood maintained her bullish BTC position in a recent Bloomberg interview. This was after her company collected more of the Coinbase shares after the SEC served the company.
While she said the crackdown on the companies is healthy for competition, she also answered another question about her $1 million forecast. In support of her position, Wood said:
“The more uncertainty and volatility there is in global economies, the more confidence in Bitcoin grows.”
