Coin Metrics: Only One of Four Bitcoins Was Active in the Last Six Months


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.

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).