Bitcoin is going through its best moment in years. And it is that, when it is about to reach its maximum historical price, the main metrics of Bitcoin reach record figures. Thus demonstrating, how together with the price the adoption of the cryptocurrency has been growing. Which could indicate that this new big bullish rally is much more organic and sustainable than the one that occurred in 2017.
1- Market capitalization
One of the top metrics hitting record highs during this bull rally is Bitcoin’s market capitalization. And, although it has not yet reached its maximum historical price, there are currently many more Bitcoins on the market than during the last bullish rally. Thanks to the mining work of cryptocurrency users.
Thanks to this, despite not yet breaking its listing record, BTC has already achieved its highest market capitalization in history. Reached at the time of writing this article the 349,821,285,756 dollars. Above the 326.501 million dollars that it achieved in 2017.
Market capitalization is one of Bitcoin’s metrics that hit record highs. Source: CoinMarketCap.
2- Participation of institutional investors
One of the great differences between this great bullish rally and the one that occurred in 2017 is the massive participation of institutional investors. And it is that, while in 2017 the main impulse for the price of Bitcoin came from small private investors and speculators. This time the demand is being driven by large companies and investment firms.
The main example of this is Grayscale, a firm that offers its institutional clients to serve, in exchange for a commission, as an intermediary between them and the crypto world. Acquiring and saving the cryptocurrencies that large investment firms wish to buy, saving these large investors the hassle of having to directly manage their Bitcoins. Reaching record figures the amount of Bitcoin that Grayscale has in custody, exceeding 500,000 BTC.
Institutional investors don’t stop buying Bitcoin. Source: The Block.
3- Addresses with 10 dollars or more
Another metric that hit record numbers in recent days is the number of unique Bitcoin addresses that have a balance of $ 10 or more. On the one hand, this increase makes sense, since when the value of Bitcoin increases radically, so does the value of the BTC saved in different directions. So someone who had just over $ 5 in Bitcoin at the start of the rally would now own over $ 10.
However, there is also another cause for the increase in this figure. And it is simply the massive entry of new investors to the market, due to a phenomenon known as FOMO, “Fear Of Missing Out” or fear of being left out. That is, the momentum that leads more and more people to enter the crypto market to take advantage of the gains generated by the bull rally before it is too late. Currently the number of addresses with $ 10 or more is 18.32 million.
The number of addresses with more than $ 10 is at an all-time high. Source: Coinmetrics.
4- Number of BTC addresses
Closely related to the previous metric, the number of Bitcoin addresses that exist in the cryptocurrency Blockchain has also increased significantly, according to Glassnode. Currently reaching the record number of 722 million unique addresses.
This would be an important piece of information when talking about the massification and popularity of Bitcoin. Well, although not all these accounts are active, the fact that so many have been created tells us about the interest of the general public regarding cryptocurrency. A good omen regarding the future of BTC usability.
The number of addresses, one of the main metrics for Bitcoin, continues to rise. Source: Glassnode.
5- Payments with Bitcoin (BTC)
Finally, and since the objective of Bitcoin is not to become simply a speculative financial asset, but a currency that can compete with fiat money, we must talk about payments with Bitcoin. And, especially, the volume of payments that are made with BTC in the United States.
To know this figure, the value of the payment transactions carried out through Silvergate is used as a reference. An American bank famous for offering mechanisms for the execution of payments to merchants using cryptocurrencies. And in this sense, in the last quarter the Silvergate system reached the record figure of 68.36 million dollars executed in Bitcoin.
Payments made on Silvergate on the rise. Source: Silvergate.