As the bear market continues, various market analysts have pointed out key statistics or factors that show that Bitcoin A bull market may not seem far away. This time, Bloomberg analyst Jamie Coutts has identified the key Bitcoin adoption statistics that provide bullish signals to the crypto community.
What are these key Bitcoin statistics?
In a tweet shared on his X (formerly Twitter) platform, 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 the highest in the past five years.
Last month there was also an increase in the number of people by almost 1% to cling more than one 1 BTC. Meanwhile, entity-adjusted Bitcoin transaction volume has increased by more than 9% over the past month. This metric also has a 99.8% percentile over the past five years.
These two metrics are part of the key metrics used to determine how widely adopted the Bitcoin network and token are. Their position in the green is undoubtedly bullish, especially considering that many are said to have exited the crypto market due to the ongoing 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. The entity-customized metric is even more important because it measures the number of unique Bitcoin users rather than active wallets.
However, there are some negatives to the Bitcoin-on-chain update that Coutts laid out. The value of these entity-adjusted bitcoin transactions has fallen by over 30% in the past year (although it has increased by 30% in the past three years). The median transfer value has also fallen dramatically (over 98% in the last three years), putting it in the bottom percentile over the last five years as well.
This shows that the economic value of the network is declining, even though adoption is currently at an all-time high.
BTC price looks strong above $26,000 | Source: BTCUSD on Tradingview.com
Worrying Concerns About Bitcoin Adoption
There has been increased institutional interest in the flagship cryptocurrency, Bitcoin, especially with traditional fund managers are moving to offer various Bitcoin Exchange Traded Funds (ETFs). However, this interest has made many wary of 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 from Coutss. In a tweet released on September 26, he said orphan shows that three asset managers (Vanguard, BlackRock and State Street) are major investors in the three largest listed 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 account for “approximately 8.9% of the global hash.”
According to him, there may be a risk of “creeping influence that could conflict” with the network’s values. He believes these companies can go so far as to censor transactions with such influence.
This development is more important because Black rock is one of several fund managers that have applied to offer a Spot Bitcoin ETF.
Featured image from iStock, chart from Tradingview.com