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According to blockchain analysis platform Glassnode, Asian markets are still reluctant to buy Bitcoin and other digital assets, despite the marginal crypto price recovery recorded over the past few weeks.
On-chain activity and Bitcoin network utilization remain strongly within the bear market territory, although it’s gradually recovering.
EU And US Dominate Bitcoin Sell Pressure
The data also shows that majority of the Asian markets are still dominating the selling of Bitcoin since January this year. But in contrast, markets in the EU and US have dominated the buying pressure.
The report also noted that the United States led the Bitcoin buying from the middle of last year, but at the moment, the EU is leading the bid support for BTC.
The development of the Bitcoin network is highly dependent on the growth of the new BTC entities. Presently, the networks offer support for new on-chain entities at an average rate of 110k daily.
The rate is close to the levels experienced during the peak of a mini bull run in 2019. Additionally, the volume of Bitcoin transactions has surged recently although it is still far lower than the transaction levels in 2019.
Metrics such as active addresses, transaction counts, and new on-chain entities, a higher growth rate would be a positive signal. This will also likely support a strong price recovery, based on the history of price movements for crypto.
On the other hand, a decline in network utilization will lead to a more bearish observation, which could be a sign of exhaustion in demand, according to the report.
Investors In The US and EU Lead The Bull Support For The Past Two Years
Glassnode’s report shows that the price of the largest cryptocurrency in the world by market capitalization has always been in the same tight spot. But an unexpected price surge in Bitcoin this week has elevated the value of the crypto asset.
Glassnode also pointed out that the investors in the E.U and the U.S have offered general bull support for the past two years. This includes heavy buying between late 2020 and early 2021, which catapulted the prices of Bitcoin and several other crypto assets. And as it was in 2021, EU and US buyers are providing the highest amount of support for the Bitcoin bull movement, Glassnode added.
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