Assessing if Bitcoin [BTC] will be a good ‘August visitor’
Bitcoin [BTC] recorded the most profits in July, making 17% for its investors. The crypto king registered a six-week high in the same month when it hit $24,500. The last time BTC performed this exceptionally was in October 2021.
Beyond these records, BTC hit another incredible milestone. According to Glassnode, the number of addresses with profits hit a new thirty-day high. The on-chain data platform recorded the latest landmark at 25,925,854.30.
📈 #Bitcoin $BTC Number of Addresses in Profit (7d MA) just reached a 1-month high of 25,925,854.530View metric: — glassnode alerts (@glassnodealerts) August 2, 2022
So the price increase in July did not just come as profits but as more profits for more investors. Interestingly, it did not end there, as it seems that investors have regained their confidence in the Bitcoin momentum.
Brace up again
As August began, it seemed that BTC investors were looking forward to another month full of upticks despite BTC retracing to $23,000 at press time.
According to CryptoQuant, exchange depositing addresses massively increased across all exchanges as July ended. As of 30 July, it was 19,126. By the last day of the month, it had gone up to 58.670 before riding as high as 67,966 on 2 August.
However, the pump seemed to have taken a fall, recording only a 0.98% uptick in the last 24 hours. Still, that has not deterred deep-pocket investor numbers from declining.
This is because Glassnode recorded a tremendous rise in addresses with 100 BTC and 10,000 BTC.
At press time, the addresses with 100 BTC had surged to 15,844. The same happened with those with 10,000 BTC as it went up to 102—another record high in over two months.
Hold your horses
While these records may have helped regain investor BTC faith, it might be too early to conclude. According to a Glassnode report released on 1 August, the BTC bear market sentiment might not be over.
The report pointed to the little demand across Bitcoin’s network activity as one reason to be careful of its supposed bullish momentum.
It also noted that the current oversold conditions of the coin may pose risk in its quest for an uptick. The report stated,
“However, under the surface, on-chain transactional demand remains lackluster at best, and this rally has not yet seen a convincing follow through in observable demand activity. The net result is that Bitcoin blocks are partially empty”