Bitcoin’s 2022 Bear Market Differed in One Critical Way Compared to Its 2018 Slump: Crypto Analyst Jamie Coutts
Former Bloomberg Intelligence analyst Jamie Coutts says one metric shows a key difference between Bitcoin’s (BTC) bearish phases in 2018 and 2022.
Coutts says that the number of BTC accumulation addresses soared in the 2022 bear market, while they decreased in the 2018 BTC market slump.
According to Coutts, the increase in accumulation addresses indicates a stronger belief in the future of Bitcoin.
“One of these Bitcoin bear markets is not like the other.
Accumulation addresses (bought twice and never sold):
2018: -20%
2022: +60%
Conviction.”
Bitcoin is trading for $38,825 at time of writing, up 2.8% in the last 24 hours.
Another big difference in the crypto space over the past several years, says Coutts, is that there was a massive increase in daily active users (DAUs), which is the number of unique addresses transacting on a blockchain each day.
“Crypto daily active users in layer-1s/layer-2s:
2019: 200,000
2023: 5,000,000
Four-year CAGR (compound annual growth rate): 123%.
Let’s see where this goes.”
Coutts predicts that artificial intelligence (AI) technology will accelerate crypto adoption and help DAU soar to nearly 400 million in 2030.
“Several key drivers are coalescing behind the re-acceleration of blockchain adoption as the technology steadily embeds itself into the fabric of our digital era. The role AI will play in the future of blockchain will be a major swing factor in that adoption arc.”
Generated Image: DALLE3