As the bear market continues to persist, several market analysts have pointed out key metrics or factors that show that bitcoincrypto-analyst-reveals-the-best-time-to-buy-altcoins/” rel=”nofollow”> Bull Market Might Not Be Far Far Away. This time, Bloomberg analyst Jamie Coutts has identified key bitcoin adoption metrics providing bullish signals to the crypto community.
What are these key bitcoin metrics?
in a cheep Shared on his X platform (formerly Twitter), Coutts noted that “HODLers” and transactions on the bitcoin network were at an all-time high. According to the update he shared, the number of addresses holding more than 1 btc is at its highest level in the last five years.
In the last month, there has also been an increase of close to 1% in the number of people bitcoin-defy-shorters/” rel=”nofollow”>tenure more than 1 btc. Meanwhile, bitcoin transaction volume, adjusted by entity, increased more than 9% in the last month. This metric also has a 99.8% percentile over the past five years.
These two metrics are part of key metrics used to determine how widely the bitcoin network and token are adopted. That they are in the green is certainly bullish, especially considering that many are said to have abandoned the cryptocurrency market due to the persistent conditions.
The first metric shows that more addresses are accumulating btc, and a significant portion of it, even though the crypto token has been lukewarm for a while now. The entity-adjusted metric is even more meaningful as it measures the number of unique bitcoin users rather than active wallets.
However, there are some negative aspects of the bitcoin on-chain upgrade that Coutts presented. The value of these entity-adjusted bitcoin transactions has fallen more than 30% in the last year (although it has increased 30% in the last three years). The average value of transfers has also decreased drastically (more than 98% in the last three years), also placing it in the lowest percentile in the last five years.
This shows that the economic value of the network has decreased even though adoption is currently at an all-time high.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/09/Bloomberg-Analyst-Points-Out-Two-Key-Bitcoin-Metrics-That-Demonstrate" alt="bitcoin Price Chart by Tradingview.com (btc Metrics Bloomberg Analyst)” width=”2884″ height=”1746″ loading=”lazy”/>
btc price looks strong above $26,000 | Source: BTCUSD on Tradingview.com
Worrying Concerns Surrounding bitcoin Adoption
There has been increased institutional interest in the flagship cryptocurrency, bitcoin, especially with traditional fund managers move in to offer various bitcoin exchange-traded funds (ETFs). However, following this interest, many have become cautious about the true intentions of these fund managers and how they could make bitcoin more centralized.
These concerns are likely to be further fueled by a recent revelation made by Coutss. In a tweet posted on September 26, he pointed notes that three asset managers (Vanguard, BlackRock and State Street) are major investors in the three largest publicly traded mining companies.
While he stated that his statement should not be taken as FUD, he expressed concern about what this could mean for the bitcoin network, as these fund managers represent “around 8.9% of the global hash.”
According to him, there could be a risk of “stealth influences that could conflict” with the network’s values. He believes these companies could even go so far as to censor transactions with such influence.
This development is more significant because Black Rock is one of several fund managers that have come forward to offer a Spot bitcoin ETF.
Featured image from iStock, chart from Tradingview.com
