16 Charts to Understand Bitcoin This Year: Over 140 Million New Addresses, Average Profit Chip Ratio is 60.50%

In 2022, Bitcoin ended the bull market that had lasted for the previous two years and entered a volatile downward bear market. The tightening of global liquidity caused the price of Bitcoin to fall below the $20,000 threshold, and problems emerged successively in major exchanges and DeFi protocols, further undermining market confidence.

This article provides a comprehensive review of the data changes in Bitcoin this year across five aspects: trading market, on-chain fundamentals, chip and address structure, mining, and applicability, offering an analytical basis for the outlook of the coming year.

Summary of Content

1. Trading Market

The overall decline of BTC within the year has exceeded 65%, showing a "step-like" downward trend.

The exchange's BTC supply decreased by 533,700 coins, with a drop of approximately 20.20%.

3)10 After mid-October, the market estimates that the leverage ratio will drop from a maximum of 40.47% to 28.05%, and will generally not exceed 30% thereafter.

4. institution's BTC holdings moderately decreased by 4.54%, and the OTC premium rate dropped to -44%.

2. On-chain fundamentals

The number of on-chain Bitcoin users 1) has明显下降 compared to last year, but remains relatively stable amidst significant market fluctuations.

In 2), the total annual trading volume reached 88.99 million transactions, a decrease of 4.13% compared to last year, but the total trading amount was approximately 1.256 billion BTC, an increase of 36.37% from last year.

The cumulative on-chain transaction fees of 3) are approximately 137 million USD, with an average on-chain transaction fee of about 1.53 USD per transaction daily, showing a significant downward trend within the year.

3. Chip and Address Structure

The average profit chip ratio of 1) is 60.50%, which means that 40% of the chips are in a loss state on average daily throughout the year.

The chip concentration of the "whale" Address 2) has undergone a "concentration-dispersion" process this year. The asset distribution of general users shows a trend of accelerated small amount and polarization in the duration of holding coins.

4. Mining

The average daily computing power of ) is approximately 218.5 EH/s, with an annual growth rate of 11.21%, showing a moderate increase.

2. Mining profitability is further squeezed, with daily mining earnings per T hash rate dropping to $0.06, a year-on-year decline of 76%.

5. Applicability

The number of Lightning Network channels decreased by 18.53%, and the circulation of WBTC decreased by 24.48%, indicating a reduced connectivity with other ecosystems.

) 01. The coin price has dropped by 65.09%, and the exchange inventory has decreased by 20.20%.

In 2022, the price of BTC dropped from around $47,700 at the beginning of the year to about $16,600 by the end of the year, a decline of approximately 65.09%. Throughout the year, there were a total of 6 instances of daily declines exceeding 10%, with 2 occurrences in November alone.

BTC presents a "stair-step" downward trend, with each "plunge" almost always accompanied by an intraday volatility exceeding 10%. Significant declines typically occur within a day, followed by a brief period of stabilization before declining again.

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In 2022, the exchange's BTC supply decreased from 2.6423 million coins to 2.1086 million coins, a reduction of 533,700 coins, with a decline of approximately 20.20%. After the FTX incident, the exchange's BTC supply rapidly decreased, with a total reduction of about 240,000 BTC over the 11 days from November 6 to 17.

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The market estimates that the leverage ratio will continue to rise throughout the year and then quickly decline. On October 11, it reached the year's highest at 40.47%, but a month later it fell back to 28.05%. Since then, the leverage ratio has not exceeded 30%.

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Institutional BTC holdings have moderately decreased by 4.54%, and the OTC premium rate has dropped from -20.74% in January to -44.12% in December, a decline of 112.73%.

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) 02, the average monthly active addresses reached 27.82 million, with a total transaction amount of 12.56 billion BTC.

In the first 11 months of 2022, the average cumulative active Addresses of Bitcoin was approximately 27.82 million, a decrease of 7.67% compared to last year. The average daily active Addresses was about 916.5 thousand, a decrease of 7.70% compared to last year.

As of December 15, this year Bitcoin has added a total of 141 million new Addresses, a decrease of 9.50% compared to the same period last year. In the first 11 months, the average monthly addition was 12.274 million, a decrease of 9.83% compared to the same period last year.

Overall, the number of Bitcoin on-chain users in 2022 has decreased significantly compared to last year, but has remained relatively stable amidst significant market fluctuations.

As of December 15, 2022, the total number of Bitcoin transactions for the year reached 88.99 million, a decrease of 4.13% compared to last year. However, the total transaction amount for the year is approximately 1.256 billion BTC, a significant increase of 36.37% compared to last year. The average monthly transaction amount in the first half of the year was 135 million BTC, clearly higher than the 86.96 million BTC in the second half.

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In 2022, the average on-chain transaction fee for Bitcoin was about $1.53 per transaction per day, showing a significant downward trend throughout the year. As of December 15, 2022, the cumulative on-chain transaction fees amounted to approximately $137 million, also showing a clear downward trend.

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) 03. The average profit chip ratio continues to decline, with the chip quantity ratio for a 1-2 year holding period growing the most.

In 2022, the average share of profitable Bitcoin chips was 60.50%, meaning that throughout the year, an average of 40% of the chips were in a state of loss. The share of profitable chips showed a clear downward trend throughout the year, decreasing from 74.54% at the beginning of the year to 55.77% at the end of the year, a reduction of over 18 percentage points.

The concentration of Bitcoin chips experienced a process of first concentration and then dispersion within this year. The total balance of the top 100 addresses accounted for 15.03% of the circulating supply at the beginning of the year, rising to a peak of 15.81% in mid-June, and then declining to 14.82% by the end of the year.

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In 2022, the number of small addresses continued to grow significantly, but compared to last year, the range of balances for addresses that achieved growth expanded from below 1 BTC to below 10 BTC, and the increase in small addresses was greatly enhanced.

The chips of different holding periods continue to differentiate, with the dominant holding period being 1 to 2 years. As of December 15, there are 3.9186 million BTC with a holding period of 1 to 2 years, accounting for 20.37%.

The proportion of coins held for a period of 1 to 2 years increased by more than 8 percentage points within the year, which is roughly equivalent to the change in the proportion of coins held for 6 months to 1 year. There has been an increase in both short-term and ultra-long-term holding addresses.

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Overall, the asset distribution of general Bitcoin users shows a trend of accelerated micro-ization and polarization in the length of holding periods.

) 04. The annual computing power continues to grow, and the daily unit computing power mining revenue has decreased by over 77%.

As of December 17, there have been 25 adjustments to the mining difficulty of BTC throughout the year, with 15 increases and 10 decreases. Overall, the increases outweigh the decreases.

In 2022, the average Bitcoin hash rate was approximately 218.5 EH/s, with an annual growth rate of about 11.21%, showing a mild upward trend. The highest hash rate during the year was around 316.2 EH/s, and the lowest hash rate was about 160.3 EH/s. The estimated annual electricity consumption was approximately 113.83 TW/h, comparable to that of the Netherlands.

The continuous decline in coin prices throughout the year coincided with a steady increase in computing power, but the decline in coin prices was greater than the increase in computing power. The mining revenue of Bitcoin per T of computing power dropped from $0.25 at the beginning of the year to $0.06 by the end of the year, a decrease of as much as 76%.

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Despite the sluggish market, the selling pressure from miners in 2022 was not significant. The annual Bitcoin Miner Position Index ) MPI ( averaged -0.52, which is less than 0, indicating low selling pressure. However, there were four periods throughout the year with relatively high selling pressure.

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) 05, the number of Lightning Network channels has decreased by over 18%, and the supply of WBTC has decreased by over 24%.

In 2022, the number of channels in the Lightning Network decreased from 83,000 to 67,700, a total decline of about 18.53%. Up until mid-October, the number was relatively stable, but it then rapidly decreased significantly.

The funding capacity of the Lightning Network first increased and then decreased within the year. Before October 25, it rose from 3305 BTC to 5097 BTC, an increase of 54.22%. After that, it dropped rapidly, with an overall annual increase of about 46.19%.

In 2022, the total amount of WBTC also rose and then fell. Before mid-May, it increased from 258,100 coins to 285,000 coins, and then dropped to 194,900 coins by the end of the year, with an overall decline of about 24.48% for the year. In late November, the WBTC/BTC exchange rate briefly fell below 1, showing signs of decoupling.

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