The past week has been brutal for the larger cryptocurrency market, largely due to the drastic drop in Bitcoin’s price. Bitcoin, the world’s largest cryptocurrency, suffered a loss of 14% over the past week. However, its price movement took down the altcoin market too as the second-largest and the third-largest cryptocurrencies, Ethereum [ETH] and XRP, fell by approx. 20%. However, the aforementioned change in the market performance of Bitcoin has highlighted new metrics for the world’s largest cryptocurrency.
Nearly 42% of all Bitcoin has not been moved on-chain in the past two years. According to data provider Coin Metrics, this percentage of BTC is now approaching levels unseen since mid-2017, a period right before the market’s 2017 bull run commenced.
Source: Coin Metrics
The report by Coin Metrics added,
“The amount of BTC untouched in more than two years has not eclipsed 42% since July, 2017.”
Defined as BTC transfer value multiplied by the number of days since those BTC were last transacted, BTC transfer value days destroyed had not spiked before BTC fell under $9k.
Source: Coin Metrics
These spikes called attention to transfers taking place with dormant Bitcoin and could indicate that long-dormant coins had been transferred, a development that could precede potential sell-offs.
A whale movement was identified on 3 March, as 14,500 BTC were moved from an unknown wallet to a new address. Even though no tremors were noticed in Bitcoin’s spot price, market observers are hoping for a bullish move in the movement of the world’s largest cryptocurrency.
Meanwhile, addresses with balance >$10 fell by 1.3%. BTC’s market cap had fallen by 8.7% within a week, whereas the mining revenue fell by almost 7%. As the hash rate marked a new ATH, the difficulty was reported to have fallen by 0.3%.
