Bitcoin is having the best time in the crypto market after spirited surges despite slight decline runs and is presently trading at $18,092. If Bitcoin eventually finishes the market day on $18,000, it means that the leading digital asset has closed above that figure for two days running. Notably, this is the fourth day since the price of Bitcoin first crossed the $18,000 price mark.
In the wake of its performance, analysts and experts have tried to tie its surge to some crypto market factors. According to analysts, they have looked at factors like the number of Bitcoin going into exchanges, the amount of Bitcoin remaining in spot reserves, the rising demand of the coin, and the surge in the number of active Bitcoin addresses.
The number of active Bitcoin addresses does not determine the price
Analysts have said the number of active addresses does not determine the level of participation despite it being one of the key metrics to look at. In their arguments, they said that even if there is a surge in the number of active addresses, it is hard to predict price movements if the wallets’ balances are all lower than 0.1 Bitcoin. Also, to predict the price of the digital asset, one can look into the number of Bitcoin addresses holding about 1K+ coins instead of the ones holding less than that amount.
Furthermore, Bitcoin addresses that hold more than 10K in Bitcoin are either Bitcoin whales, mining pools, institutional investors, crypto exchanges, which further buttresses the fact that one can use the wallets with 1K+ Bitcoin balance to predict the price of the digital asset.
One reason is that wallets that have a balance of $1,000 and above provide us with a clear picture of traders’ preference and the direction that the price might flow to next. Besides, users who are on exchanges that have an average volume and hold more than $1,000 in Bitcoin are the ones that will determine the next price of the digital asset.
Bitcoin holders are presently accumulating Bitcoin
According to data from skew that showed the number of Bitcoin on spot exchanges, one can see that while the volume of Bitcoin on exchanges has been below $500 million, the number of Bitcoin addresses that holds $1,000 Bitcoin and above just hit an all-time high figure of 2257.
This development further supports that users with over $1,000 in their wallets are presently accumulating the digital asset. Another valid argument is that most of the people that hold such Bitcoin are possibly miners, and they are always selling their Bitcoin holdings from time to time.
However, the Bitcoin community is presently accumulating massive amounts of Bitcoin, which is one reason why the price of the digital asset will continue to rise as the days progress. Another factor supporting this case is the number of the dollar-pegged digital asset, USDT, currently in supply on crypto exchanges by Santiment. The last time there was a massive surge in the number of USDT on crypto exchanges, the surge was followed by a rapid rise in Bitcoin’s price.