Gauge Bitcoins [BTC] price trends as key metric hits new high

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Active Bitcoin addresses defy expectations, setting a new all-time high and potential market shifts. Bitcoin’s long-term holders hit an all-time high, with implications for future price dynamics.

A recent deviation from one of the Bitcoins [BTC]key indicators that could have a significant impact on the trend of its prices have just been observed according to new data. This unexpected change has caught the attention of investors and analysts as they try to decipher its implications for the trajectory of cryptocurrencies.

Read Bitcoin (BTC) Price Prediction 2023-24

Additionally, some reports suggest that a gradual change in the behavior of BTC holders has been affected by the collapse of FTX. Coins not spent since the incident are slowly becoming part of the long-term holdings.

Active Bitcoin Addresses Set Record

Like many other financial assets, Bitcoin is subject to trends and patterns that can provide insight into its price movements. New data from Cryptoquant has revealed a fascinating twist in Bitcoin’s active address pattern.

The chart indicates that the Bitcoin price tends to increase following a drop in the hash rate when the number of active addresses exceeds a certain range. For most of this year, the active addresses metric has been declining between 900,000 and 1.1 million addresses per day.

However, the model collapsed on May 1. The active addresses metric soared to a new all-time high of nearly 1.3 million, the highest figure in more than a year.

The increase in the number of active addresses suggests a potential shift in market dynamics, sparking interest and speculation among traders and analysts.

Source: CryptoQuant

Post-FTX Bitcoin shifting to long-term holdings

In the aftermath of the FTX collapse, an intriguing phenomenon was observed: a gradual accumulation of unspent BTC. These coins, untouched for a period of more than 155 days, tend to turn into long-term holdings (LTH).

Data from Glassnode revealed a staggering 14.3 million coins falling into this category. Moreover, this accumulation propelled the number of long-term holders to an all-time high, constituting a remarkable 74% of the circulating supply.

Possible trigger for address metric

The disruption of the active address pattern can be partially attributed to the excitement surrounding the ordinal craze.

Additionally, data from Dune Analytics indicated that daily signups saw a significant increase on April 1. The push coincided with the day the active address metric reached its highest point in nearly a year.

This suggests a correlation between the influx of new participants and the peak of active addresses.

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Implications of LTH activation

Moreover, with the change in the long-term holding threshold (LTH), around 26% of the total Bitcoin supply was currently active. This implied that long-term investors hold a large share of Bitcoin.

Additionally, it is important to consider the potential impact if these long-term holdings were to be introduced for trading purposes. The influx of such supply could trigger a price drop.

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