Bitcoin’s Crucial Trio: Santiment’s Analysis for the Next Bull Run

Cryptocurrency enthusiasts around the world are waiting for the next bull run of Bitcoin. However, the big question is, how can one determine whether a bull run is on the horizon? Santiment, a leading on-chain data agency, has released its analysis of Bitcoin’s crucial trio to monitor before the next bull run commences.

Introduction

Bitcoin is the leading cryptocurrency in the world, with a market capitalization of more than $500 billion. Over the years, its price has experienced dramatic fluctuations, from a low of a few dollars to an all-time high of almost $65,000. Therefore, it’s essential to keep track of various metrics to determine when the next bull run will begin.

The Crucial Trio: Trading Volume, BTC Wallet Activity, and Circulation of Coins

Santiment’s analytics team identified trading volume, the circulation of coins, and BTC wallet activity as the three essential metrics to observe before the next bull run:

Trading Volume

According to Santiment, trading volume is a crucial metric to observe. When the trading volume is high, it’s an indication that the market is active, and traders are buying and selling Bitcoin. On the other hand, a low trading volume suggests that the market is stagnant. Santiment’s analysis shows that Bitcoin’s trading volume declined significantly after the price exceeded $30,000.

BTC Wallet Activity

The number of unique wallets that interact with the Bitcoin network is another important metric to monitor. Santiment notes that the number of active wallets has increased by 11% in 2023, while the price has increased by 65%. This suggests that more people are joining the Bitcoin network, which could lead to a future bull run.

Circulation of Coins

The circulation of BTC coins on the network is also an important metric to observe. Santiment’s analysis shows that the circulation of coins has declined after Bitcoin fell following a small rise in the middle of March. This indicates that fewer people are moving coins on the network, which could affect the price of Bitcoin.

LookIntoChain’s Report on Dormant Bitcoin Wallets

Apart from Santiment’s analysis, LookIntoChain, an on-chain crypto tracker, has reported that three dormant Bitcoin wallets have awakened after almost a decade of inactivity, moving a total of 8,199 BTC worth $225 million. The fourth wallet that reactivated contained a massive 79,957 Bitcoin valued at almost $2.20 billion today. These wallets likely reactivated to sell, but this could also indicate that dormant whales are awakening.

Conclusion

Santiment, a leading on-chain data agency, has released an analysis of three crucial metrics that investors should monitor before the next bull run commences. These metrics include trading volume, the circulation of coins, and BTC wallet activity. It is essential to consider the utility of a cryptocurrency to evaluate its market capitalization growth. Price surges cannot sustain if there is no increase in the number of coins exchanged between wallets. The recent reactivation of dormant BTC wallets suggests that Bitcoin dormant whales are awakening. Investors should pay attention to these metrics to make informed decisions about Bitcoin investments.

FAQs

  1. What is Bitcoin’s current price, and where can I find the latest Bitcoin price?

The current price of Bitcoin may vary and change every second. You can check the latest Bitcoin price on various cryptocurrency exchanges, including Binance, Coinbase, and Kraken.

  1. How does the number of active wallets affect the price of Bitcoin?

The number of active wallets affects the price of Bitcoin as it indicates the demand for the cryptocurrency. An increase in the number of active wallets implies more people are interested in using Bitcoin, resulting in higher demand and a potential price increase.

  1. Why is trading volume an important metric to observe?

Trading volume is an essential metric to observe as it shows the level of activity in a particular market. A higher trading volume can indicate increased demand and interest in the asset, while a low trading volume may imply a lack of interest and low liquidity.

  1. Can dormant wallets affect the price of Bitcoin?

Dormant wallets can affect the price of Bitcoin if their owners decide to reactivate them and sell their holdings. The sudden influx of supply can cause a drop in price if there is no increase in demand to match the additional supply.

  1. How can I start trading Bitcoin?

To start trading Bitcoin, you need to open an account on a cryptocurrency exchange, deposit funds, and buy Bitcoin. You can then trade Bitcoin for other cryptocurrencies or fiat currencies. It is important to conduct thorough research and understand the risks involved in trading cryptocurrencies before investing.

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