Ang0xeth

In last week’s Week 19 weekly report, we analyzed several data related to the Bitcoin Network Ordinals and BRC-20, and subsequently made related reports in Glassnode Insight’s Weekly Report.

This week we will analyze the main reasons that caused Bitcoin to be blocked and unable to achieve further price breakthroughs, and where the key points found in the on-chain data analyzed based on the holding period appear.

Figure 1: Bitcoin Exchange Whale Ratio (@CryptoQuant)

The first thing we see is that according to the Exchange Whale Ratio data chart given by @CryptoQuant, in early May, the whale ratio of the exchange once climbed above 0.8, which also means that the Bitcoin tokens flowing into the exchange , there is a probability of more than 80% being dominated by whales. On the other hand, this range is also a reasonable price range for whales to sell their chips.

In Week 8’s weekly report, we talked about the birth of Bitcoin Ordinal Inscriptions and some on-chain information. This year is also a very important year for the Bitcoin network. From Ordinals to BRC-20, a variety of derivative applications are also involved. It has affected the activity of Bitcoin on the chain and the usage and value of the entire encryption market.

Figure 1a: Bitcoin Active Addresses (@CryptoQuant)

Figure 1b: Bitcoin Transaction Count (@CryptoQuant)

The first thing we see is the activity status of Bitcoin on the chain. Here we take two representative data for analysis, "Active Addresses" and "Transaction Count". We can see that currently The "number of active addresses" is much higher than the number of addresses in 2021/11, indicating that to a certain extent, the demand for influx into the Bitcoin market has increased, but unfortunately, it is still lower than the peak of the bull market in 2021/04 , indicating that investors are hesitant and cautious and have not fully recovered to the extent of having confidence in this market.