The number of active addresses in the Bitcoin network gradually increases again while the hash rate remains on the dive. Meanwhile, there is a slight trend towards accumulation on the investor side.
The crypto market starts the trading day again with a red sign. Total market capitalization slipped 4.2 percent on a daily basis to just under 1.45 trillion US dollars, and the Bitcoin price was also visibly ailing with a minus of 5.2 percent. At the time of going to press, the key cryptocurrency is quoted at 33,089 US dollars with a discount of 5.5 percent on a weekly basis.
The summer slump is also dragging the performance of the altcoins down. Ethereum (ETH) buckles by eight percent, Binance Coin (BNB) and Cardanao (ADA) each fall by five percent, while XRP and Polkadot (DOT) are dragging around seven percentage points. Dogecoin (DOGE) got it even more clearly with a minus of nine percent. At the bottom, however, is Uniswap (UNI), which has lost almost twelve percent of its value in the last 24 hours. After all, the UNI course and Binance Coin are the only top 10 coins to have a positive weekly balance.
Active bitcoin addresses are increasing
While the Bitcoin rate continues to spin in circles, the number of active addresses has made a significant leap forward. A month ago, the number of BTC addresses that issue or receive transactions was around 715,000, the same as last year. After the hole, however, the network is gradually reaching for the million mark again. Glassnode’s on-chain analysts currently count around 907,000 active addresses – an increase of 26 percent in just four weeks. In a direct comparison, Bitcoin is once again ahead of the Ethereum network, where the number of active addresses was briefly higher at the end of June than Bitcoin.
Free fall hash rate
Meanwhile, the miner exodus from China is leaving ever greater traces in the Bitcoin hash rate. Almost a week ago, on July 2nd, the computing power in the BTC network reached the level of September 2019 at 84 EH / s. In just two months, the hash rate was more than halved. Since then, the computing power has leveled off by almost ten percent to the current level of 92 EH / s. In view of the ongoing flight of miners from the Middle Kingdom, the hash rate is likely to correct itself downwards a few more times.
The drop in the hash rate was not without consequences and triggered the largest negative adjustment of the Bitcoin Mining Difficulty in Bitcoin history. On July 3, the difficulty, i.e. the level of difficulty for calculating a new Bitcoin block, fell by a full 28 percent.
Glassnode: “Early phase of accumulation”
While the hash rate downward trend continues, according to Glassnode, there is a positive trend in the distribution of Bitcoin stocks with a view to the Hodl Waves. The Hodl Waves measure the distribution, i.e. buying and selling, of Bitcoin stocks over different periods of time. Using the metric, patterns such as Hodl and sales trends can be derived with regard to long-term and short-term investors. Like the blockchain researchers in a Series of tweets explain, the number of young coins, i.e. those that changed hands less than a month ago and therefore at relatively favorable conditions, is declining. As a result, short-term investors are entering an “early phase of accumulation”.
In contrast, the three to twelve month old stocks of “Middle Age Coins”, which were bought on an extremely volatile gradient between 9,000 and 60,000 US dollars, are swelling. According to Glassnode, it is these “bull market buyers” that will see the greatest selling pressure in the coming weeks.