Bitcoin Blunders, Then Bounces Back

1. Bitcoin Daily Active Addresses

Our thesis: Cryptocurrencies are like companies and active addresses are like customers, similar to active users of Facebook or active subscribers of Netflix.

We can measure the price (black line) relative to the active addresses (green line) to see if bitcoin is currently underpriced or overpriced.

Investor takeaway: The price (black line) remains in the $28K range as of this writing, though active addresses (green line) have grown even further and now sit at a whopping 1.06 million.

Bitcoin slipped to just over $26K earlier in the week after it was announced that the Commodity Futures Trading Commission (CFTC) was suing Binance, the largest and most popular crypto exchange in the world, for violating monetary laws like the Commodity Exchange Act. Government agencies are continuing their ongoing prosecution of crypto firms, and with an enterprises like Binance being targeted, ripples swiftly flowed to the far corners of the industry.

The sudden bounce back is a testament to the asset's increasing resilience, and traders can feel hopeful that the vulnerability BTC exhibited in 2022 has thinned. With all this in mind, investors may want to consider boosting their portfolios now before additional spikes take place.

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• Source: https://www.bitcoinmarketjournal.com/bitcoin-blunders-then-bounces-back/