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Following the volatility over the weekend, Bitcoin holders appear to have woken up as active addresses surpass one million.
Number of active Bitcoin addresses hits seven-month high
According to Arcane Research’s latest weekly report, the weekend crash woke sleepy Bitcoin investors as the number of active addresses sees a significant increase.
The “number of active addresses” is a Bitcoin indicator that measures the number of addresses that have shown some activity on the chain in a given day.
If an address makes more than one move in a given day, the metric always counts it only as an active address. For this reason, the indicator can give us an accurate picture of how many BTC holders have moved their coins on that day.
When the number of active addresses increases in value, it means that market activity increases and previously dormant addresses could come back. This trend is generally observed around periods of high volatility.
On the other hand, when the value of the indicator goes down, it implies that there are not a lot of holders making moves. Such a trend may mean that investors are currently waiting for the price to move before changing positions. It could also simply be due to a lack of interest in the market at the time.
Related reading | Ethereum’s strength sends Bitcoin ratio to 2018 highs
Now here is a graph that shows the trend in the value of the number of active addresses over the past year:
Looks like the indicator value has been increasing for some time | Source: Weekly Arcane Research Update – Week 48
As the graph above shows, the number of active Bitcoin addresses has seen a sharp increase recently. The crypto price crash over the weekend was responsible for this sudden increase in the value of the metric.
Currently, the indicator’s value is over 1 million, the highest in the past seven months. The last time higher values were seen was in May, after the crash.
Related reading | Majority of Bitcoin Investors Entered This Year, Grayscale Says
As the market cooled, there were only around 750,000 active addresses left in July. Since the bottom of this month, the value of the indicator has gradually increased.
It is not yet known whether the current high values will continue to rise or whether the value of the indicator will fall again as the market calms down after the volatility over the weekend.
BTC price
As of this writing, the price of Bitcoin is floating around $ 49,000, down 24% from last month. The chart below shows the BTC price trend over the past five days.
BTC still consolidating? | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research
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