- Bitcoin’s network activity rebounded, with the potential to reach one million active addresses by June.
- There was more interest in inscriptions, but warning signs emerged with a falling MVRV ratio.
From Bitcoin [BTC] activity rebounded after a recent slump, with Santiment’s data implying the network’s number of active addresses could grow to one million by June 2023.
📈 May is relatively low #Bitcoin address activity is finally starting to pick up again. An increasing utility is needed for this #crypto assets to enjoy sustained rallies. Keep an eye out if $BTC may enter June with 1 million or more daily active addresses. https://t.co/LSa2slHWgt pic.twitter.com/zqTH9KGIqc
— Santiment (@santimentfeed) May 27, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
Interest in Inscriptions is increasing
One of the main reasons for the high activity on the network is the huge interest in Bitcoin subscriptions. Data from Dune Analytics showed that the number of daily signups has increased significantly from 150,000 to 200,000 in recent days.
Source: Dune analysis
In addition, a vast majority of inscription activity stems from the demand for text-based inscriptions, which accounts for approximately 90% of the total activity.
Coupled with the increasing interest in Subscriptions, there has been a notable increase in interest in holding Bitcoin. Glassnode’s data indicates that the number of non-zero addresses reached an all-time high on May 28.
📈 #Bitcoin $BTC The number of non-zero addresses just reached an ATH of 47,180,069
View statistics:https://t.co/VtoChZbLsa pic.twitter.com/124aCwyEd4
— glassnode alerts (@glassnodealerts) May 28, 2023
In addition, Bitcoin’s MVRV ratio, which measures the average profit or loss of all holders, fell. This suggested that Bitcoin holders became less profitable. If this trend continues, it could potentially lead to a reduction in holder selling pressure.
While these developments bode well for Bitcoin, some warning signs have also emerged. BTC’s long/short difference has narrowed, indicating that the number of new addresses outnumbered the number of old addresses.
It is worth noting that new addresses are more likely to sell their holdings, potentially causing price swings and challenges to Bitcoin stability in the future.
Source: Sentiment
Bitcoin traders are turning positive
Despite these potential concerns, the total number of long positions for BTC has increased significantly in recent days, the report said Mint glass. This rise indicates growing bullish sentiment among investors, possibly driven by positive market indicators and the prospect of future price increases.
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One reason for the spike in long positions in Bitcoin’s favor could be the diminishing implied volatility for the cryptocurrency. Decreasing volatility often encourages investors to take more favorable positions in anticipation of a period of price stability or upward movement.
Source: The Block
At the time of writing, Bitcoin was trading at $27,214.77, up 1.89% over the past 24 hours, according to CoinMarketCap.