Only one of the four bitcoins (not taking into account the newly-mined ones) moved between addresses and was stored on them for the last six months.
— CoinMetrics.io (@coinmetrics) October 31, 2018
The last time Bitcoin reached such low levels of activity in 2015. At the same time, over the last year about 50% of bitcoins moved, and at the end of 2017 this figure was 60%.
“It tells me we are still in a Bitcoin recession,” Nic Carter, co-founder of Cambridge, Massachusetts-based Coin Metrics, said in a phone interview with Bloomberg.
Analysts also noted that despite the decrease in daily trading volume by almost 80% compared with the January peak, owners of about $4 billion in bitcoins are moving every day.
As stated by the representative of the investment company DA Davidson & Co, Gil Luria, this indicates the absence of problems with liquidity.
“That does not mean there is a liquidity issue. Four billion of volume a day means almost any investor in Bitcoin can liquidate their entire position within one trading day,” he said.
The study also showed that 40% of all bitcoins are not traded on the market, and from 25 to 35% of coins are active during a bull rally. In periods of falling prices only about 30% of bitcoins are liquidated, analysts added.
A recent study by Coin Metrics states that the indicators of the first cryptocurrency are not subject to seasonality.
Coin Metrics estimated the data for 2014-2018, however, given the significant difference between the rally and bear market periods over the past five years, it was not possible to detect a clear trend.
Then, analysts decided to convert trading volumes into a percentage of the total capitalization of the asset and found that the average of 2% [green curve] from month to month practically does not change.
Meanwhile, a study conducted by Diar shows that more than 55% of all bitcoins are on wallets with a balance of over 200 BTC (almost $ 1.3 million).