- As the bear market continues, many market analysts have pointed out fundamental metrics or factors that suggest Bitcoin’s bull market isn’t too far away.
- The volume of Bitcoin transactions has increased by over 9% in the past month, including those from asset-backed entities. This metric is within the 99.8th percentile of the past five years.
- There are some negatives from the Bitcoin transaction update revealed by Coutts. The value of these asset-adjusted Bitcoin transactions has fallen by more than 30% in the last year.
Bloomberg analyst Jamie Coutts shared significant Bitcoin adoption metrics that provide bullish signals for Bitcoin; the bull season is not far away!
Analyst Boosts Hopes for the Bull Season in Bitcoin
While the bear market continues, many market analysts have pointed out fundamental metrics or factors that suggest Bitcoin’s bull market isn’t too far away. This time, Bloomberg analyst Jamie Coutts has identified key Bitcoin adoption metrics that provide bullish signals to the crypto community.
In a tweet shared on the X (formerly known as Twitter) platform, Coutts mentioned that “HODLers” and transactions on the Bitcoin network are at record levels. According to his recent update, the number of addresses holding more than 1 BTC is at its highest in the last five years.
Last month saw approximately a 1% increase in the number of individuals holding more than 1 BTC. Additionally, the volume of Bitcoin transactions, including those from asset-backed entities, has increased by over 9% in the past month. This metric is within the 99.8th percentile of the past five years.
These two metrics are part of the fundamental metrics used to determine how widely adopted the Bitcoin network and token are. With these metrics in the green, it is undoubtedly a positive situation, especially when many are believed to be leaving the crypto market due to ongoing conditions.
The first metric indicates that there are more addresses accumulating BTC and a significant portion of it, despite the crypto token’s stagnant performance for some time. The asset-backed metric is even more critical because it measures the number of unique Bitcoin users, rather than active wallets.
However, there are some downsides to Coutts’ Bitcoin transaction update. The value of asset-backed Bitcoin transactions has fallen by over 30% in the past year (although it has increased by 30% in the past three years). Median transfer value has also decreased significantly (over 98% in the past three years), placing it in the lowermost percentile of the past five years.
This indicates that despite adoption currently being at an all-time high, the network’s economic value is low.
Concerning Issues Surrounding Bitcoin Adoption
In recent times, there has been increased institutional interest, especially in the pioneering cryptocurrency Bitcoin, with traditional fund managers starting to offer a range of Bitcoin exchange-traded funds (ETFs). However, following this interest, many have become cautious about the true intentions of these fund managers and their potential to centralize Bitcoin.
These concerns can be further exacerbated by a recent statement made by Coutts. In a tweet published on September 26th, he stated that three asset managers (Vanguard, BlackRock, and State Street) are the primary investors in three major publicly traded mining companies.
According to him, these fund managers “represent approximately 8.9% of global hash.” He believes that there may be a risk of “persistent influence” that could conflict with the network’s values. He believes that these companies could censor transactions with such an influence. This development is even more significant because BlackRock is one of several fund managers that have applied to offer a Spot Bitcoin ETF.
