In times of misunderstanding, fear and greed in the crypto market, it is important to have a solid foundation for making investment decisions, and this is where data from trusted crypto analysts, whether Glassnode or Sentiment, is often featured in our reviews, comes in. . in hand.
Let’s start with the positive news from Glassnode, according to which the number of “non-zero” bitcoin wallets reached an all-time high of 42,349,855 wallets. However, the previous record was set a day earlier on July 4th, indicating a continuing trend and the massive emergence of new BTC investors. Additionally, wallets with balances above 0.01 BTC and 0.1 BTC are also on the rise, with 10,414,216 and 3,681,161 unique addresses, respectively.
The previous ATH of 42,349,354 was seen on 04 Jul 2022
View metrics: https://t.co/VtoChZbLsa pic.twitter.com/HZasRYlB2l— glassnode alerts (@glassnodealerts) 5 July 2022
On a less positive note, Glassnode reports that the relative unrealized loss (RUL) figure reached a three-year high of 0.498. The metric shows the total loss in USD of all current bitcoins, which were priced higher than the current price of BTC at the time of recovery. Of course, a value of 0.498 for the RUL is not a limit on a bear market; During the last major market correction in 2018, the indicator reached a value of 0.71. However, a further decline in the indicator clearly indicates the emergence of a new bullish momentum, especially when applied with the relative unrealized profit (RUP) and overall net unrealized profit/loss (NUPL) metrics.
View metrics: https://t.co/uYjImdqw3t pic.twitter.com/83X3Orgt1y— glassnode alerts (@glassnodealerts) 5 July 2022
In negative news, sentiment reported today that bitcoin average profitability -45% year-on-year. This is the lowest figure since 2018. Market value to actual value (MVRV) was used to announce the diagnosis. On the one hand, this is a sad fact, but on the other hand it is a good sign for a possible entry into the market. The indicator is currently at a 2018 low, when the price of one BTC was only $3,600.
365 days return for average #bitcoin The trader was +119% at the end of Feb, 2021. After 16 months, the same measure is -45% for the average trader. This -164% reversal is the biggest swing since December 2018. https://t.co/Z3z5lfR0Gl pic.twitter.com/Lm8YLJ2HFg— sentiment (@santimentfeed) 5 July 2022
On-chain metrics do not absolve investors of responsibility
It is important to understand that on-chain metrics are not a panacea. The market has reached similar indicators only in the 2018 lows and may remain there for a long time, squeezing now and then and exhausting impatient investors. Nevertheless, careful use of proven indicators and careful analysis will certainly help any crypto enthusiast to minimize the risk of losses and not drowning in this fiery crypto market.