On-chain data indicated that Bitcoin saw the worst in June, considering the bellwether crypto’s performance since 2011. It saw a 37.5% dip within the month of an already disastrous Q2.
The Fed’s policy actions, increased inflation, and recession fears have deteriorated the cryptocurrency market. How will such developments influence Bitcoin’s performance in the upcoming weeks?
July has presented some relief for Bitcoin following June’s grievances. For now, the crypto market sees a ‘mini-rally.’ Bitcoin hovers weakly around the $20K mark. The leading crypto traded at $19,971 at this publication. Meanwhile, the latest weekly newsletter discusses vital on-chain indexes.
The report confirms a massive risk-off narrative for the market as U.S inflation maintains elevated predictions for June plus impending recession fears. Bitcoin’s on-chain activity and performance saw a modest reduction in recent weeks, matching the claims.
Analyzing the Data
Bitcoin saw active addresses shifting since the leading crypto’s November 2021 peak. The network saw addresses of about 1.2 million. As the figures have slumped to around 870,000 by July 5, It remains challenging to keep existing addresses due to the market’s grim scenario.
The entity growth metric has seen a downside trend which reflects the difference between leaving and new on-chain entities. The growth rate witnessed a few upticks during the LUNA debacle and amidst the late June sell-off. Moreover, these figures have plummeted towards the 2018 and 1019 bear market levels following drops to 7,000 daily new entities.
Contrary to the mentioned data, there’s a notable development associated with BTC exchange supply. Recent months have seen increased exchange outflows regardless of the falling prices.
Investors have removed more than 750,000 $BTC from exchanges since March 2020. Meanwhile, the last three months saw 142.5K (18.8% of the overall) $BTC in outflows. That confirms a stable, growing community.
The latest on-chain data also indicated that BTC’s worst could be over. Moreover, the community stayed euphoric since Bitcoin revived beyond $20L on July 5. For instance, crypto enthusiast Lark Davis cheered the move with his one million Twitter followers.
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