Web addresses with 0.1 BTC or less have seen stagnation, or slow growth, for months. However, the first weeks of 2023 bring optimism about a market recovery. The BTC network had become richer by 620,000 “small” Bitcoin addresses since January 13, when the currency’s value was around $20,000 per coin.
The optimism of small investors has also spread to institutions, which are well shaken by this state of the cryptocurrency market. In just one week, 117 million dollars were invested in crypto investment funds, and Bitcoin attracted the largest part of this capital. This kind of data is a real encouragement after the huge losses that affected the rapid decrease in the number of Bitcoin millionaires.
A report by the investment group CoinShares shows that the total part of the said investment attracted by Bitcoin is worth 115.6 million dollars. The return of enthusiasm of large institutions is in line with on-chain metrics whose parameters have been growing in recent weeks, reports Fxstreet.
Does Bitcoin market show recovery potential?
The on-chain metric “Bitcoin Realized HODL Multiple” has recorded growth in the BTC market that has been ongoing for the past three months. This indicator records whether BTC holders are selling cryptocurrencies at a profit or loss at a certain time. The metric indicates that the circumstances were in favor of sellers who were operating at a constant profit. These circumstances condition the arrival of new investors and, finally, the growth of demand in the BTC market.
The “Supply in Profit” metric tracks the unrealized profit of the cryptocurrency Bitcoin. The last time it changed was when the value of BTC expressed in dollars was much lower than it is now. This indicator shows that the supply of Bitcoin cryptocurrency has increased over the last 30 days. “Supply in Profit” recorded a growth of 20 percent during 2023, which implies that larger and longer-term investors have more stable positions right now.
All of the above indicators suggest that Bitcoin, which during the second half of the market was showing a downward trend, is now showing a sustained upward trend. The last 30 days have seen positive investment signals that could last for the next two years.
The indicators in the chain, i.e., the growing demand among investors, may be a sign of the recovery of the crypto market, which could start an upward trajectory. We should see an increase in the demand for Bitcoin cryptocurrency, and therefore a price recovery.
