2021 On-Chain Highlights - Valkyrie

2021 On-Chain Highlights

2021 has been one of the most action-packed periods on record for Bitcoin as a growing financial asset.

Scarcity
Scarcity
Decentralization
Decentralization
Security
Security

have led to:

Continued-user-growth

Continued user growth
The-rise-of-institutional-adoption

The rise of institutional adoption
Nation-state-adoption
Nation-state adoption
 
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The cryptographically transparent nature of the Bitcoin network allows any user to view distribution metrics, miner data, bitcoin holder behavior and supply statistics. This unique data stream helps to confirm real life events and market movements on the blockchain with everyone having access to the same data.
1
Bitcoin hash rate is a measure of the computational power for the network, which can be a helpful tool to analyze miner performance. Throughout June, there was a steep drop in hash rate when China began to enforce a crypto mining ban. As miners relocated outside of China, the hash rate has consistently recovered. In January, China’s share of global hash rate was 53.3%. As of July the hash rate has fallen to 0%, indicating that the ban in China has further contributed to the decentralization of the network.
2021-highlights-1

On-chain data provided by CryptoQuant. As of October 25, 2021

2
Mean Coin Age (MCA) is the average age of unspent transaction outputs (UXTOs). Simply put, MCA tracks the behavior of long-term holders. A sharp drop in MCA implies the movement of bitcoin that haven’t moved in a long time. Despite the price of bitcoin correcting over 55%, MCA indicates that long-term holders continued to hold through this volatility without hesitation, leading to a rapid recovery in price.
2021-highlights-2

On-chain data provided by CryptoQuant. As of October 25, 2021

3
This impressive period of accumulation in Q3 has led to a continuously decreasing balance of BTC held on exchanges worldwide. The total amount of coins heldon all exchange addresses is currently at the lowestlevel in over three years with 2.3 million BTC or only 12.98% of the circulating supply.
2021-highlights-3

On-chain data provided by CryptoQuant. As of October 25, 2021

This presentation is for informational purposes only. The information within it is not intended as an offer to sell, or the solicitation of an offer to buy any securities. Such offerings may only be made by prospectus and offering documents. Past performance is notindicative of future results. Investments may be speculative, illiquid and there is a risk of total loss. There is no guarantee that any specific outcome will be achieved. Valkyrie Investments is not offering tax, legal or financial advice. Please see your own professionalfor such guidance. Information is general in nature and may not be applicable to any specific situation or time.