The Bitcoin’s recent price performance along with results across several metrics has piqued the interest of many dignitaries. Adding the cue is Jamie Coutts, a Bloomberg analyst, who has shared some insights over the recent performance of the asset.
According to Coutts, Bitcoin’s bull run seems to be in early stages given that major holders are rapidly accumulating the digital asset. He adds that there has been a sharp increase in Bitcoin holdings among “residents,” or long-term investors, with these investors now owning over 74.8% of the entire Bitcoin supply.
Additionally, 30% of Bitcoin has been moved to cold storage since 2020. This has resulted in a reduced supply on exchanges, which now hold a mere 2.26 million Bitcoin.
To this, Coutts suggests that Bitcoin is “fairly valued relative to the number of active entities on the network,” as highlighted by the consistent z-score on the subchart. Additionally, his simplified price-cycle model projects a Bitcoin price of around $39,000 by the fourth quarter of 2023, and an optimistic prediction of $92,000 by the end of 2025, provided active entities surpass 600,000.
Simultaneously, Coutts reveals that there is also a notable increase in on-chain activity, as witnessed by the rise in ordinal inscriptions and BRC-20, a standard for tokens. He explains that transactions are also touching high figures demonstrating the ongoing surge in Bitcoin use.
Transactions are averaging 4x the 2021/22 average of 100,000 per day, despite a fading since the initial craze in the first quarter.
Notably, the increasing transactions has been an ongoing trend and has touched figures and Bitcoin miners have generated a remarkable $184 million in transaction fees during the second quarter of 2023. Simultaneously, Coutts’s views also align with previous reports where bullish signs for Bitcoin were traced.
As reported by Todayq News, Bitcoin’s network growth and long-term holder supply continue to paint an optimistic picture for the asset despite its recent slide in prices. Amid the historically low volatility rates, many are viewing the asset as a respite for investors after the roller coaster ride that Bitcoin has often been associated with.
However, many also assume that this unprecedented period of calm will be followed by a huge storm. As of writing, Bitcoin is trading at $29,039, marking a 0.43% drop over the past 5 days.