Introduction
Bitcoin?s price recently experienced a dip, falling to $29.5K from its high of $64K in April. This has caused concern among some investors, who worry that the cryptocurrency?s value may continue to decrease. However, on-chain data suggests that there is still strong interest in Bitcoin among investors.
On-Chain Data Shows Growing Interest in Bitcoin
On-chain data refers to information about Bitcoin transactions that are recorded on the blockchain. This data can provide insights into the behavior of investors and the overall health of the cryptocurrency market. Despite the recent dip in Bitcoin?s price, on-chain data shows that investors are still bullish on the cryptocurrency.
One metric that suggests growing interest in Bitcoin is the number of active addresses on the network. According to data from Glassnode, the number of active addresses has increased by 30% since the beginning of the year. This indicates that more people are using Bitcoin and that there is a growing demand for the cryptocurrency.
Another metric that suggests growing interest in Bitcoin is the amount of Bitcoin held by long-term investors. According to data from CoinMetrics, the percentage of Bitcoin held by these investors has increased from 60% in January to 80% in May. This indicates that long-term investors are confident in the future of Bitcoin and are not selling their holdings despite the recent dip in price.
Institutional Investors Remain Bullish on Bitcoin
Institutional investors, such as hedge funds and corporations, have also shown a growing interest in Bitcoin. According to data from CoinShares, institutional investors added $98 million to Bitcoin investment products in the week ending June 7. This marks the first inflow in four weeks and suggests that institutional investors are still bullish on the cryptocurrency.
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Conclusion
While the recent dip in Bitcoin?s price may have caused concern among some investors, on-chain data suggests that there is still strong interest in the cryptocurrency. The number of active addresses on the network has increased, the amount of Bitcoin held by long-term investors has risen, and institutional investors continue to invest in Bitcoin. These factors indicate that Bitcoin?s value may recover in the future.
