The dynamics are growing in Bitcoin. The asset has never been fundamentally healthier, and its main indicators are all buy screams.
Chain activities, hash rates and BTC delivery metrics also support this. In fact, a BTC supply data point has now reached a level that last led to the largest bull market in crypto history.
Bitcoin: first of its kind Financial assets require unorthodox fundamental analysis tools
Bitcoin is an asset like nothing else that exists today. It's a little over a decade old. And while many cryptocurrencies have been created in its image, none is familiar with the same level of acceptance and acceptance.
Unlike stocks, which derive their valuations from company earnings, for example, crypto-assets create value through benefits and their networks.
Since the value of the native asset depends on the underlying protocol, the state of this network is examined in the fundamental analysis. This includes hash rates, production costs, mining difficulties, transactions and delivery.
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The beauty of the blockchain that Bitcoin created when it was created is that all distributed ledgers are completely transparent. This means that anyone can look up public transactions and wallet information.
Wallet addresses may not be simply tied to individuals. However, the functionality of the blockchain, the total value stored and all transactions that flow into and out of the wallet are visible.
Advanced tools have been developed to monitor blockchain data and the movement of BTC across addresses and over the network. Knowing if wallets, especially the largest wallets, will hold BTC in the long term can give you an insight into upcoming trends.
If the supply of larger wallets increases and this offer is not postponed within months, this could be a sign of an upward trend. And that's exactly what data now shows.
Only 38.5% of the total Bitcoin offer moved in the previous year, the lowest level since the beginning of 2016 pic.twitter.com/8DgTvL110H
– CoinMetrics.io (@coinmetrics) July 1, 2020
Slightly more than a third of the BTC supply has moved in the past year, the lowest since the start of the last bull run
According to BTC coverage dataOnly 38.5%, or just over a third, of the total BTC offer moved in the previous year. The remaining almost two thirds of the circulating BTC supply has not moved in for over a year.
This metric has now dropped to a level that has not been reached since 2016, just before the bull market that drove Bitcoin into the public eye.
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The actively moving BTC supply fell to this bullish low in 2016 and remained close to the low until mid-2017. Then bitcoin prices peaked too attractively not to be sold, and the asset started to move again.
During this time the Cryptocurrency took the world by storm, rising from $ 1,000 to $ 20,000.
These data suggest that more Bitcoin investors and wallets are holding out in anticipation of the next bull market. Not even the Black Thursday breakdown could shake these strong hands, and nothing will possibly do it.