Bitcoin adoption metrics across the board “look awful,” claims a BTC fundamental expert on Twitter.
BTC adoption metrics appear to have decreased
A fundamental BTC expert on Twitter claims the metrics leading to Bitcoin adoption “look terrible” and cites some charts highlighting the major trends.
There are three relevant graphics here that the expert pointed out, each related to the growth in BTC addresses.
The first metric is Daily Active Addresses which, as the name suggests, shows the number of daily active addresses.
This is what the Bitcoin Daily Active Addresses chart looks like:
BTC active addresses have plummeted recently
As can be seen in the graph, Bitcoin’s daily active addresses have only decreased in the last few months. In fact, the figure seems to have almost halved compared to the high at the beginning of the year.
The next relevant indicator is the number of addresses with more than 1k BTC metric, which shows how many addresses more than a thousand coins are stored on.
Based on the value of the metric, it becomes possible to know how many whales are still clinging to their Bitcoin.
If the value goes down, it means that whales have started unloading. On the other hand, this means that old whales have bought their way back into BTC and / or new investors have come.
This is how the diagram of the number of Bitcoin addresses with or more than 1k BTC in the balance looks like:
The BTC addresses with or more than 1k coins haven't recovered since the bull run
The graph above shows that bitcoin whale addresses fell when BTC peaked during the 2021 bull run, and the metric has shown no signs of recovery since then.
This means that the whales that were dumped during the run have not yet shopped into BTC.
Related reading | TA: Bitcoin is becoming vulnerable why BTC could drop below $ 32,000
The final metric is the BTC New Address Growth, which shows how many new addresses are being created each day. This is what the diagram looks like:
BTC new addresses have been gradually going down since the start of the year
It looks like the new address metric has dropped to the same level as it did right after the 2018 crash.
Related reading | Bitcoin trading volume has dropped to its lowest level since 2020
While each of these indicators may not look great, it should be noted that they can change for the better very quickly.
At the time of writing, BTC is trading around $ 32.8,000, down 5% over the past 7 days. Here is a graph showing the trend in crypto price:
Bitcoin seems to be on a downward trend | Source: BTCUSD on TradingView
Featured image from Pexels.com, charts from glassnode, TradingView.com