In just 24 hours, on August 16, 2021, there were nearly one million active addresses on the Bitcoin blockchain.
This was revealed by Santiment, which noted that there was a one-hour spike in activity, the largest since July 4, despite the market being relatively flat.
The price of Bitcoin spiked between 18:00 and 19:00 UTC, when it was hovering between $46,600 and $46,300, and just before the drop that brought it down to $45,600 in less than two hours.
After that, the price of bitcoin fell again, reaching $45,300 in the early hours of today.
Santiment’s chart also shows a cyclical pattern in the total number of active addresses on the bitcoin blockchain over the course of 24 hours.
Indeed, as of July 19, four distinct cycles can be identified, all of which are very similar in both number and duration, with activity peaks in the early days of the week and a significant drop during the weekends.
In particular, the number of active addresses over 24 hours fell below 650,000 over the last weekend, which has not happened since the mid-July weekend, i.e., before the last bitcoin price drop below $30,000. However, the 850,000 active addresses were not exceeded the following Monday, while the 950,000 thresholds was even exceeded yesterday.
Bitcoin’s active addresses confirm institutions’ dominance.
The fact that the number of active addresses drops on weekends when retail investors are more active and institutional investors are less active, with a subsequent peak in the first days of the week, when companies return to work, adds further confirmation to what we already discovered a few days ago thanks to data revealed in Coinbase’s Q2 2021 report.
Indeed, it is now clear that the increased activity in cryptocurrency markets, particularly in bitcoin, is being driven by large institutional investors rather than tens of millions of small retail investors.
On the other hand, for some time now, the average value of individual transactions on the bitcoin blockchain has consistently exceeded $ 300,000, demonstrating the whales’ dominance. However, it is necessary to add to this figure that the median is much lower (less than $800) and that this figure does not include transactions made off-chain, such as with Lightning Network.
Furthermore, the median value of individual on-chain transactions is heavily influenced by significant capital movements of exchanges, which are frequently done with a small number of transactions but a large magnitude.