From holding times to exchange activity, blockchain dataset reveal some fascinating insights about the behavior of investors during the last few weeks.
In recent weeks, Bitcoin has experienced one of the most aggressive corrections in its market history. A lot has been written about the market activity of Bitcoin in centralized exchanges during this period but there are some fascinating insights that can be derived from analyzing the activity in the Bitcoin blockchain. Today, I would like to highlight some blockchain indicators that reveal a unique perspective about the recent activity in the Bitcoin market.
1) Activity by Medium Term Holders Increase Drastically
IntoTheBlock’s UTXO Age indicator shows that activity in Bitcoin UTXOs that between 3-to-6 months increased drastically while the activity between 1-to-3 months holders had the sharpest decrease. This is an indication that mid term holders have been the most active demographic in the market.
2) Western Countries Dominated Blockchain Activity in May
IntoTheblock’s East-West indicator shows that the Bitcoin on-chain activity in western nations is significantly larger than the equivalent in Asian countries. This is an indication that investors outside Asia have been more active buying and selling BTC.
3) Bitcoin’s Flows Into DeFi Have Increased Steadily
IntoTheBlock’s Bitcoin Locked on DeFi indicator illustrates that the volume of wrapped Bitcoin going into DeFi protocols have remained consistent and slightly increased over the last few weeks. This is a sign of Bitcoin investors looking for alternatives sources of alpha.
4) The Volume of BTC Going Into Centralized Exchanged is Back to March Levels But Outflows Have Icreased
IntoTheBlock’s Exchange Inflow Indicator shows that the volume of BTC flowing into centralized exchanges spiked during the crash of mid May but now is back to the levels seen in March when the price was around $55K. However, the flows of BTC out of centralized exchanged have increased drastically which is a sign of uncertainty in the market.
Inflows:
Outflows:
5) The Number of New Addresses Trading BTC Has Declined but Mid-Term Holding Addresses Have Increased
IntoTheBlock’s Time-Held Indicators show that the number of active new addresses holding BTC for less than 1 month has declined steadily while the number of addresses holding BTC between 1–12 months have increased. This is a sign that speculation in the market is declining due to the recent correction.
Less than 1 month:
Between 1 and 12 months:
