December 8, 2022

The third quarter (Q3) of 2022 was filled with intense scrutiny of Bitcoin crypto assets [BTC] in her heart. Recently, the king of crypto assets has seen its footprints diminish due to developments in major blockchains such as Ethereum [ETH] and Cardano [ADA].

However, BTC is still the largest crypto asset in the market by market cap per mile. While the coin’s price fell again in the previous quarter, another strange pattern was observed from the chain’s data.

Old BTC, new story

BTC has seen a drop in price in recent months on the back of ongoing macro pressure. Another big sell-off started last week after the launch of Ethereum Merge. However, in light of these events, Bitcoin has seen a bearish volatility trend. The 30-day average volatility for August 2022 saw a 20% decrease from the 80% observed in June.

Source: messari

Recently, Messari pointed out one of the main effects of reducing the volatility of bitcoin’s price Report. Bitcoin’s lower volatility has led to lower liquidations across the larger crypto market.

In total, long liquidations in August 2022 amounted to more than $5 billion, which is less than half as seen in June ($10.8 billion). The total short liquidations also decreased significantly. During August, short liquidations were about $3.5 billion compared to more than $6.6 billion in June.

Source: messari

Network problem

With the transitions taking place, the BTC network has also undergone certain transformations in the previous quarter. In addition, there has also been a slowdown in network funded addresses. In Q3 2022, funded addresses grew by only 1.1% compared to 2.5% in Q2 2022. Furthermore, the number of funded addresses saw its first decline in August 2022 after 10 months of growth.

The network also saw a 4% drop in its average daily active address of 890,000 compared to the second quarter of 2022. However, Al-Masari said:

“Active titles appear to have returned to their baseline of activity, after the cycle peaked in the fourth quarter of 2021 along with pricing.”

Source: messari

One of the similar stories for BTC from the previous quarter was that daily transactions remained largely unchanged. In fact, they continued to log more than 250,000 daily transactions throughout the year. However, a decrease in average transaction fees was observed as the average fee per transaction decreased by 21% to $1.4.

Source: messari

At the time of writing, BTC has been in a state of intense speculation in the crypto community about its future. BTC price has also traded below $18,900 with sellers who have the upper hand in the past week now.

This move has put BTC’s weekly losses at 7% as it struggles in a bear market.

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