Because the bear market continues to linger, several market analysts have identified key metrics or aspects that show that the Bitcoin bull market may not be far off. This time, Bloomberg analyst Jamie Coutts has identified key Bitcoin adoption metrics that provide bullish signals to the crypto community.
What Are These Key Bitcoin Metrics?
In a tweet shared on his X (formerly Twitter) platform, Coutts noted that “HODLers” and transactions on the Bitcoin network were at an all-time high. In accordance with the update he shared, the variety of addresses holding greater than 1 BTC is at its highest during the last five years.
Previously month, there has also been near a 1% increase in individuals holding a couple of 1 BTC. Meanwhile, the amount of Bitcoin transactions, entity-adjusted ones, has surged by over 9% up to now month. This metric also has a 99.8% percentile during the last five years.
These two metrics form a part of key metrics used to find out how widely the Bitcoin network and token are adopted. Their being within the green is undoubtedly bullish, especially considering that many have been said to have left the crypto market due to lingering conditions.
The primary metric shows that more addresses are accumulating BTC, and a big chunk of it, despite the fact that the crypto token has been tepid for some time now. The entity-adjusted metric is much more significant because it measures the variety of unique Bitcoin users reasonably than energetic wallets.
Nonetheless, there are some negatives from the Bitcoin on-chain update that Coutts laid out. The worth of this entity-adjusted bitcoin transactions has dropped by over 30% up to now yr (even though it is up by %30 within the last three years). The median transfer value has also decreased drastically (over 98% within the last three years), putting it also in the underside percentile during the last five years.
This shows that the economic value of the network is down despite the fact that adoption is currently at an all-time high.
BTC price looks strong above $26,000 | Source: BTCUSD on Tradingview.com
Worrying Concerns Around Bitcoin’s Adoption
There was increased institutional interest within the flagship cryptocurrency, Bitcoin, especially with traditional fund managers moving to supply several Bitcoin exchange-traded funds (ETFs). Nonetheless, following this interest, many have turn out to be wary in regards to the true intentions of those fund managers and the way they might make Bitcoin more centralized.
These concerns are prone to be further fueled by a recent revelation made by Coutss. In a tweet released on September 26, he pointed out that three asset managers (Vanguard, BlackRock, and State Street) are major investors within the three biggest publicly traded mining firms.
While he stated that his statement shouldn’t be taken as FUD, he raised concerns about what this might mean for the Bitcoin network as these fund managers account for “about 8.9% of the worldwide hash.”
In accordance with him, there could be the chance of “creeping influence that may conflict” with the network’s values. He believes these firms could go so far as censoring transactions with such influence.
This development is more significant because BlackRock is considered one of several fund managers which have filed to supply a Spot Bitcoin ETF.
Featured image from iStock, chart from Tradingview.com