Cryptocurrency has been surging to new heights in recent months. However, a prominent crypto analytics firm is advising Bitcoin (BTC) bulls to remain wary in the near future. Santiment's latest blog post shows that while BTC prices have grown exponentially since the beginning of 2023, many on-chain indicators are not reflecting the same parabolic growth.

The company observed Bitcoin's amount of unique addresses and found that it hasn't experienced the same increase as it has in previous bull runs. According to the firm, while BTC's active addresses have risen by 11%, its price has jumped by a whopping 65%.

Santiment also took a look at Bitcoin's circulation metric, which shows the amount of coins that are moving around each day. Based on a 30-day rolling average, the firm found that the metric has dropped by 6.4% in comparison to January 1, when Bitcoin's price was only at $16.7k.

On-chain metrics are key indicators of Bitcoin's current strength and can give insight into future price movements. Unsurprisingly, Santiment encourages BTC bulls to keep an eye on said metrics, as failure to do so can lead to severe pitfalls. The analytics firm also suggest taking note of whale activity and MVRV, which stands for market-value-to-realized-value.

To sum up, Bitcoin (BTC) bulls need to remain cautious. While the digital currency has seen impressive growth so far in 2023, on-chain metrics are not following the same trend. To keep the momentum going, crypto observers must keep a close eye on on-chain indicators and analyze whale activity and MVRV.



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