On-Chain Data Suggests June Was the Worst Month for Bitcoin [BTC] Looking at the performance of King Coin since 2011. The month saw a 37.5% drop in an already disastrous second quarter. Rumors of the Fed, inflation and now a recession are swirling around the crypto market. How will these talks affect the performance of BTC in the coming weeks?
Despite complaints during June, the month of July has brought some relief for bitcoin. The entire crypto market is going through a so called “mini rally”. Nevertheless, bitcoin managed to trade above $20,000, albeit briefly. It is currently trading just below the $19,900 mark, wherein the bulls are making an upward move. The current rise of 3.96% in BTC price has created a positive sentiment across the market.
Meanwhile, Glassnode has released its weekly newsletter discussing important on-chain metrics. The report acknowledges that,
“With US inflation projections for June rising, and storm clouds of a possible recession looming, the market remains heavily risk-averse. This is evident in bitcoin’s on-chain performance and activity, which has moderated in recent weeks.”
The newsletter included the following data to support its claim.
Dive into the data!!
Active addresses have changed since bitcoin peaked in November 2021. At the time, there were approximately 1.2 million addresses active on the network. While that number has fallen to 870,000 as of July 5, it has become difficult to maintain existing addresses given the dire market scenario.
Source: Glassnode
A downward trend has been observed in the net growth metric of entities reflecting the difference between new and leaving entities. The growth rate saw some increase during the Luna collapse and then during the sell-off at the end of June. Furthermore, these numbers have dropped to bear market levels in 2018 and 2019 after dropping to a daily new 7,000 units.
Contrary to the above data, there has been an interesting development related to the supply of bitcoins on exchanges. Despite the fall in prices, the number of exchange outflows has increased in recent months. Since March 2020, over 750,000 BTC have been taken off exchanges. However, in the last three months alone, 18.8% of the total or 142.5k BTC was seen in outflows. This is a sign of a growing community with strength in numbers.
Source: Glassnode
Recent on-chain data was also indicating that the worst may be over for Bitcoin. Furthermore, the crypto community has been enthusiastic since the revival of bitcoin when it crossed $20k on July 5. Crypto enthusiast, Lark Davis was also seen sharing the joy with his one million followers.
Look… on the bright side when can we all celebrate #bitcoin Gets back over $20,000 again!
— Lark Davis (@TheCryptoLark) 5 July 2022
