Data from blockchain analysis platform Santiment revealed that Bitcoin [BTC]The Market Value to Realized Value Ratio (MVRV) of was -43. This was close to the lowest position the metric has reached before a rebound. Historically, the king coin’s lowest value was a negative reading of -53 in December 2018.
According to Santiment, in 2021 a steady decline in the price and market cap led to a similar decline in active traders trading BTC. As a result, the index of active BTC traders has fallen an average of 43% since last September.
📉 #Bitcoin remains -72% from its #alltimehigh in November 2021. With such a fall in market cap, active traders who transacted over the past year have fallen by an average of -43%. Historically, MVRV hasn’t fallen much further before a rebound. https://t.co/KI4PdHYD4U pic.twitter.com/H1SEldHib2
— Santiment (@santimentfeed) September 23, 2022
More on-chain rejections
At press time, BTC was trading at $19,137.16. According to data from CoinMarketCap, the price position represented a 72% drop from its all-time high of $68,789.63 recorded 10 months ago.
However, in 2021, the hash rate of the Bitcoin network steadily increased. According to Messari, it was 225 MH/s at press time, up over 60% over the past 365 days. Additionally, data from the same source showed that the average difficulty on the network was at an all-time high of 32.05T.
Despite these highs, the revenue paid to BTC miners per hash per second on the network has fallen sharply over the past year. According to Messari, the number fell by 75%.
Source: Messari
Within the observed one-year period, the king coin saw disparity in the behavior of the largest stakeholders on the BTC network. According to data from HolyHolders of 1,000 to 10,000 BTC are down 2% over the past year.
The current count for this category of whales was 2,025 addresses. This decline is thus due to the steady decline in the price of BTC since its ATH in November 2021. However, holders of 10,000 to 100,000 BTC and 100,000 to 1,000,000 BTC have been more resilient.
Their numbers increased by 15% and 66% respectively in the last 365 days.
Source: Santiment
Additionally, data from Santiment also showed that the BTC network has been dormant since the November 10th ATH. A look at the fortune’s Mean Dollar Invested Age (MDIA) confirmed this. It has risen steadily over the past year, indicating stagnation in the network. This further led to a gradual decline in the price of the king coin.
Source: Santiment
During the current bear market, BTC’s price has fallen over 55% since January. With financial conditions tightening amid a broader financial markets downturn, BTC holders have turned to selling their assets at a loss to salvage their investments.
As a result, the asset’s Spent Output Profit Ratio (SOPR) spent more than half the year below the central 1 level, data from glass node showed. This was an indication that the year to date has been largely characterized by panic selling of BTC.
Source: Glassnode
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