Bitcoin (BTC): 3 Silent Network Movers No One Pays Attention To
Bitcoin (BTC) remains the most popular cryptocurrency in the world, attracting significant attention as the industry’s primary mover. While many people track the price of Bitcoin using tools like CoinMarketCap, there are several unique metrics that contribute to the growth and performance of Bitcoin that are rarely mentioned. This article explores three of these on-chain metrics.
Addresses by time held
One important feature of Bitcoin is its capped supply at 21 million. With a circulating supply of 19,571,581 BTC, acquiring the coin is a luxury, even though exchanges hold an excess of what is currently in demand.
Holders, or addresses that have held their BTC for more than one year, account for 69.23% of all addresses holding the coin. This surpasses the combination of “Cruisers” or accounts that sell regularly, amounting to 23.99%, and “Traders” or those that have held for at least three months, accounting for 6.78% of all addresses.
Network difficulty
Bitcoin network difficulty, as measured by the hashrate, is also an important metric that dictates the rate of BTC production. The current hashrate is 493,313,217.742 TH/s, up from 368,924,260.618 TH/s as of Sept. 1. A higher hashrate makes BTC production more challenging and, essentially, makes the network more secure. With the upcoming Bitcoin halving event, more miners are preparing by plugging in more miners into the network, significantly boosting the hashrate and indirectly contributing to the scarcity of the asset.
Exchange netflows
In the crypto world, exchanges are the primary channel through which many embrace and give up digital currencies like Bitcoin. Exchange netflow reveals the difference between coins entering exchanges and those leaving. The current exchange netflow is pegged at negative $62.57 million. This implies that more money is leaving exchanges for self-storage, reducing the underlying selling pressure and boosting price sentiment.
This article provides a deeper insight into the often overlooked metrics that influence the Bitcoin network. These metrics, including addresses by time held, network difficulty, and exchange netflows, contribute significantly to the overall performance and growth of Bitcoin.
