Leisl Eichholz, an analyst at blockchain data provider GlassNode, shows that investors are ready to flow into Bitcoin, while other metrics reveal more than 22 million active BTC addresses over the last month.
The price of Bitcoin (BTC) has been experiencing days of great volatility in the markets, after reaching a historical maximum close to $42.000 USD per unit. Much of the incredible movement that Bitcoin has witnessed in recent months is related to the entry of many institutional investors into the market, who began to invest billions of dollars in BTC, placing their trust in this cryptocurrency as a potential asset for the future reserve of value. However, as is almost always expected in digital markets, Bitcoin saw a correction in its price of more than 20%, trading at the date of this publication with a value close to $33.800 USD.
Although Bitcoin price has risen to 35K and 38K recently, it has not been able to hold these levels as support, and has fallen back to 33K, remaining bearish. Nevertheless, Leisl Eichholz, data provider analyst at blockchain GlassNode assures that the market is showing several signs of “good health” that can be taken as bullish, and that can push the price of Bitcoin to new support levels.
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Stablecoins ready to buy bitcoins
The first of these signals has to do with the relationship between the supply of Bitcoin and the supply of stablecoins (stablecoins) indicated in Bitcoin, a metric called stablecoin supply ratio (SSR). According to the analyst, when this metric is low, stablecoin holders have more purchasing power to buy bitcoins, while otherwise, when the metric is high, it can be interpreted as a sell signal for the cryptocurrency.
Source: GlassNode
In his last newsletter, published this February 1, the GlassNode analyst points out that the on-chain fundamentals for bitcoin remain solid, and that the metric reveals signs of “good health” for the cryptocurrency, which this last week has maintained a fairly stable price.
“When the SSR is low, this means there is a large supply of stablecoins relative to BTC, indicating more purchasing power ready to flow into BTC and other assets.”
According to Eichholz, such a low SSR shows that there are a large number of new stablecoins entering the digital ecosystem recently, and that many of these are newly minted and are being deposited on exchanges, so they are highly liquid and ready to buy. assets like bitcoin. In it report Previously, published on January 25, the analyst noted that the bearish trend in Bitcoin was coming to an end, and that the cryptocurrency seemed to be preparing to show an upcoming bullish trend in the coming weeks.
More than 22 million active BTC addresses in January
Data provider GlassNode also revealed that during the month of January, the number of active Bitcoin addresses grew to reach 22,3 million addresses, which were used to send, receive and store BTC, this being the highest number of active addresses per month seen in the entire history of the cryptocurrency.
Until now, the highest value seen in relation to this data corresponded to the month of December 2017, when the number of active bitcoin addresses rose to 21 million addresses. The rest of the following months this metric remained above 10 million and below 20 million active addresses. On the other hand, the number of “entities,” which GlassNode considers a group of addresses controlled by the same company or person, did decrease from its highs seen in early January. Eichholz explains that Bitcoin's rise to 40K may be related to the increase in the level of activity of entities, which has since decreased as the price of Bitcoin has also decreased. However, for the analyst, this decline looks more like a healthy correction for the cryptocurrency than a shift toward a bearish trend.
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