Bitcoin owners seem to be awakened after the volatility over the weekend as the number of active addresses surpassed one million.
Number Of Active Bitcoin Addresses Reach Seven-Month High
According to the Arcane Research weekly report, the weekend crash woke up Bitcoin investors who saw a substantial increase in active addresses.
The “number of active addresses” is a Bitcoin indicator that measures the amount of addresses that showed some activity on the chain during a particular day.
The metric does not count an address as more than one moving in one day if it makes multiple moves within a single day. The indicator can tell us how many BTC-holders have moved that day.
Market activity increases when the active addresses increase in value. This could indicate that previously unoccupied addresses are coming back. This tends to be seen in periods of high volatility.
On the other hand, when the indictor’s value goes down, it implies there aren’t many holders making moves. Investors may be waiting for the price to move before shifting their positions. You could simply have a low interest rate in the market.
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Here’s a chart showing the change in the number of addresses active over the last year.
Source: The Arcane Research Weekly Update - Week 48| Source: The Arcane Research Weekly Update - Week 48
This graph illustrates that there was a spike in active Bitcoin addresses recently. The crash in the crypto’s price during the weekend was responsible for this sudden rise in the metric’s value.
Currently, the indicator’s value is above 1 million, the highest it has been in the past seven months. Higher values have never been recorded since May after the crash.
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The market began to cool down and there was only about 750k active addresses remaining in July. The indicator’s value has steadily increased since the low point in July.
It’s yet unclear if the current high values will continue to rise, or if the indicator’s value will once again drop down as the market calms down from the weekend’s volatility.
At the time of writing, Bitcoin’s price floats around $49k, down 24% in the last month. The chart below shows how Bitcoin has changed in value over five days.
BTC is still under consolidationSource: BTCUSD at TradingView | Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and Arcane Research charts