Following the September crash, there had been a decline in bitcoin active addresses. However, it quickly rebounded in October. Another dip hit the market at the start of December and sent bitcoin addresses plunging again. The market had seen a drop of well under one million addresses in November. It stayed below that mark during the bull rally.
Despite some negative market trends, December’s first week was a positive one. Bitcoin’s number of addresses has increased significantly over the past seven days. This puts bitcoin at well over one million.
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Number One Million Active Addresses
Multiple times this year, more active Bitcoin addresses have risen to one million than before. This number reached 1.2 million active addresses in January after the April market crash. The May surge would not be sustained as the number fell sharply between June and July, bringing it to its lowest level for the year.
The summer slump continued with the active addresses falling below 750,000. This number has continued to rise over the years, with rallies culminating in a total of more than one million addresses. It is a seven month high, compared to June’s decline.
BTC active addresses climbs | Source: Arcane Research
It appears that the trend of selling similar to the May rise is driving the increase in active bitcoin addresses. As prices drop, investors are usually taking advantage of this to add to their positions, while those who could not get in because the asset’s price was too high could use the price dips as a perfect entry point into the market.
However, investors selling their stock on the market may cause the active addresses number to fall again due to the recent market downturn.
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Bitcoin’s Profit Declines
Unrealized profits are decreasing as bitcoin addresses have increased. Unrealized profits fell by a lesser margin in the last price job. After the October bitcoin price rally, which saw a peak at 2.82 in October, MVRV dropped to 2 by December.
BTC unrealized profits decline | Source: Arcane Research
MVRV does not feel that it is in a disadvantageous position. 2 is within the healthy range, despite the fact that the unrealized profit for the month is down. Arcane Research says this indicates that investors will be less inclined to sell if their investment margin is small.
MVRV reached its peak point at 3.96 in spring, which is a new four-year record after the previous mark of 4.72 set in 2018. In mid-July, it reached a record low of 1.54 for the year.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Featured image taken from iStock and charts from Arcane Research and TradingView.com