Bull run expected in Bitcoin post-halving still could not be perceived by the market
Many people started the year 2020 with a lot of optimism, especially members of the community of the largest cryptocurrency in the world, Bitcoin. However, not all things went according to plan. With most economies recovering from the effect of the global pandemic and a liquidity crisis pushing the price of BTC to less than $ 4,000 a few months ago, the action of the price of BTC has evidently been affected.
Nevertheless, many investors continue to hold a significant number of Bitcoin. With the number of whales holding Bitcoin increasing, the question arises – is it an inevitable bull run for Bitcoin?
According to Glassnode’s CTO, Rafael Schultze-Kraft, investor confidence is strong in Bitcoin. During a recent interaction, he observed how it is necessary to analyze the BTC at a microscopic level to understand how much the BTC is being moved and whether or not the metric has predictive power over the future price of the currency.
Looking at Bitcoin addresses and the amount of BTC they have, it is unlikely.Many people started the year 2020 with a lot of optimism, especially members of the community of the largest cryptocurrency in the world, Bitcoin. let them paint an accurate image, explained Schultze.
“How many are really holders? This is a question that has been very difficult to answer, because the approach so far has been to look at addresses. The problem is that you can control more than one address. And there are also addresses that hold funds for multiple users “.
Interestingly, the feeling of hold within the Bitcoin ecosystem remains quite strong, despite the price being below the $ 9,500 level. However, according to market data provided by Skew, in the past few months there has been a significant drop in Bitcoin’s realized volatility, dropping to 83.6%, along with a steady increase in new active addresses that maintain non-zero balances.
A few months since the price drop on March 12 and the third halving, the improvement metrics may indicate that Bitcoin may have better days in the coming months.
However, Schultze-Kraft pointed out that looking at entities rather than addresses in Bitcoin can also shed light on the volume of the currency. It can also provide a clearer understanding of what the current holding sentiment entails and whether the main cryptocurrency is abundant to finally break into the five-digit spectrum. He argued:
“Up to 75% of all the volume being moved in the chain, in fact, does not change hands. and that everything is internally within the entities “