Bitcoin network activity increases, positive sign for BTC?

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Bitcoin network activity rebounded, with the potential to reach one million active addresses in June. There was increased interest in listings, but cautionary signs emerged with the MVRV ratio falling.

Bitcoins [BTC] Activity has rebounded from a recent slump, with data from Santiments implying that the number of active addresses in the network could hit one million in June 2023.

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May’s relatively weak #Bitcoin address activity is finally starting to bounce back. The increase in utility is necessary for #crypto assets to benefit from sustained rallies. Keep an eye out if $BTC can head into June with 1 million or more daily active addresses. https://t.co/LSa2slHWgt pic.twitter.com/zqTH9KGIqc

Santiment (@santimentfeed) May 27, 2023

Read bitcoins [BTC] Price Prediction 2023-2024

Interest in listings increases

One of the main reasons for the high activity on the network is the renewed interest in Bitcoin listings. Data from Dune Analytics revealed that the number of daily signups has seen a significant increase from 150,000 to 200,000 in the past few days.

Source: Dune Analysis

Additionally, an overwhelming majority of listing activity is driven by demand for text-based listings, which accounts for approximately 90% of overall activity.

Coupled with the growing interest in listings, there has been a noticeable increase in interest in owning Bitcoin. Data from Glassnodes indicates that the number of non-zero addresses hit an all-time high on May 28.

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#Bitcoin $BTC The number of non-zero addresses just hit an ATH of 47,180,069

View metric: https://t.co/VtoChZbLsa pic.twitter.com/124aCwyEd4

glassnode alerts (@glassnodealerts) May 28, 2023

Additionally, Bitcoin’s MVRV ratio, which measures the average profit or loss of all holders, has declined. This suggested Bitcoin holders were becoming less profitable. If this trend continues, it could potentially lead to less selling pressure from holders.

While these developments bode well for Bitcoin, some warning signs have also emerged. BTC’s long/short difference decreased, indicating that the number of new addresses exceeded old addresses.

It should be noted that new addresses are more likely to sell their holdings, which could lead to price fluctuations and challenges for Bitcoin stability in the future.

Source: Santiment

Bitcoin Traders Turn Positive

Despite these potential concerns, the total number of long positions for BTC has seen a significant increase in recent days, according to Coinglass. This increase indicates growing bullish sentiment among investors, perhaps fueled by positive market indicators and the prospect of future price appreciation.

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One of the reasons for the rise in long positions in Bitcoin’s favor could be the decline in the cryptocurrency’s implied volatility. Lower volatility often prompts investors to take more favorable positions, expecting a period of price stability or upward movement.

Source: The Block

At press time, Bitcoin was trading at $27,214.77, an increase of 1.89% over the past 24 hours, according to CoinMarketCap.

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