The growth of fundamental bitcoin on-chain metrics after the market crash in March this year allows counting on “the largest take-off in history.” Such conclusions are contained in a new report by the analytical company Coin Metrics.
According to analysts, Bitcoin is known for its volatility and has experienced many crazy price spikes in its history. But this time something has changed. The cryptocurrency grew in such parameters that we did not observe in the previous phases of growth.
Analysts are paying attention to the change in the correlation of the first cryptocurrency with gold and the US dollar. This manifested itself on March 12, when Bitcoin crashed along with other markets in light of the panic caused by the COVID-19 pandemic. Coin Metrics notes that this parameter with gold remains close to record values, while with the dollar – not far from historical lows.
It also mentions recent investments in Bitcoin as a backup asset for companies like MicroStrategy and Square. According to Coin Metrics, this reinforces the thesis that the first cryptocurrency is increasingly perceived as digital gold.
Experts note the growing trend for long-term storage of bitcoin, which confirms its perception as a means of preserving capital on a par with gold.
On October 25, the share of BTC that did not move for more than a year reached 62.5%. This figure is not far from the absolute highs. Previously, a similar situation arose every time at the moment of the formation of price minimums in the first cryptocurrency.
Coin Metrics analysts also point to a drop in coin turnover to lows since 2011. This metric supports the hypothesis that bitcoin is perceived as a store of capital rather than a medium of exchange.
According to analysts, to date, the number of addresses that store more than $ 100 has reached a new record (9.74 million). This positive momentum signals the long-term adoption of the first cryptocurrency.
Another metric that researchers are paying attention to is the continuation of the outflow of bitcoin from centralized exchanges. This is partly due to the desire of users to independently store the first cryptocurrency, focusing on the long-term prospects.
Coin Metrics analysts conclude the third halving that took place in May. The chart below shows changes in the emission and price of Bitcoin.
“Historically, BTC price has hit a local peak within 1.5 years of each previous halving. With holding activity increasing and the halving less than six months in the rearview, all signs are signaling that BTC is poised for takeoff.” the authors of the report conclude.
Recall that in recent days, the number of Bitcoin addresses which hold 1000 BTC and more has grown to a new all-time high.