CoinMetrics Report Shows BTC Active Addresses Doubled In 2020

According to a Coinmetrics report, we can see that the number of BTC Active addresses doubled this year after it surged by 105% thanks to the institutional investors that got involved with the cryptocurrency as we can see more in our latest Bitcoin news.

Coinmetrics thinks that 2021 will be even stronger for BTC. The number of active BTC addresses has shot up by about 105% this year according to the Coin Metrics data. In the latest State of the Network CoinMetrics report, the site said that the number of BTC active addresses this year doubled to 1.2 million. This is important because it shows a healthy market, which is the healthiest since 2017. More active addresses mean that more people are using the crypto or they are buying it.

Historically, bitcoin has mostly been divorced from traditional markets.

But that changed in 2020, and bitcoin had one of its biggest years ever. pic.twitter.com/qLSxsFEh3R

— Nate Maddrey (@natemaddrey) December 22, 2020

Coin Metrics put BTC’s success this year down to the number of institutional investors overwhelming the market with Square, PayPal, and Microstrategy getting heavy in it. The report said:

 “Soon after [institutional investors invested] Bitcoin’s price began to rise. In a quickly changing world, Bitcoin is increasingly being endorsed as a hedge against inflation and form of digital gold.”

Coin Metrics noted that over $300 billion was added to Bitcoin’s market cap over the year and the number of active Bitcoin addresses holding at least 0.01 coins grew by more than 700,000. The site added that the biggest crypto asset by market cap will continue growing next year.

 “In many respects, bitcoin is in its strongest position yet closing out 2020. As momentum continues to build, bitcoin is on the verge of reaching unprecedented heights in 2021.”

As reported earlier today, BTC started showing signs of weakness after the crazy rally from $11,000 to $24,000 and now it is trading for $22,600 which marks a drop of a few percent since the previously hit highs. As the charts show, the Stochastic Relative Strength Index started peaking after a strong move higher and this suggests that bitcoin’s uptrend momentum lost some steam and could revert to the downside because of it. But not all analysts are convinced that a drop is likely. The charts also show that BTC may catch a bid in the $22,300 region at which point it will bounce higher above $24,000. As the chart shows, the level was crucial for the bulls over the past few days and BTC managed to hold the $22,300 support level that could suggest a reversion of the upside is likely to happen.