KEY POINTS

  • The number of active addresses and hash rate are key indicators for Bitcoin's value appreciation
  • The number of active addresses roughly represents the number of users using Bitcoin
  • Hash rate represents the security of the Bitcoin network

Based on key indicators, Bitcoin should be priced at $15,000 by now, a Bloomberg analyst suggests.

Bitcoin opened Wednesday at $10,534 but closed lower at $10,297, a 2.96% decrease from the previous day. The benchmark cryptocurrency appeared to be returning to its previous price range of $10,400, the level it breached past on Sept. 14. 

But, according to a Bloomberg cryptocurrency newsletter, this should not be the case. Bloomberg's cryptocurrency analyst Mike McGlone said Bitcoin's recent all-time high in terms of hash rate and the 30-day average of active BTC addresses implied that the benchmark cryptocurrency should now be worth $15,000, Cointelegraph reported.

A key security metric, the hash rate represents the computing power in the Bitcoin network. The greater the hash rate, the greater is the network's resistance to an attack. On Sept. 19, the network achieved 143.138m terahashes per second, the highest in Bitcoin's more than ten years of existence, according to a chart from Blockchain.com.

The number of active addresses roughly represents the number of users using Bitcoin, either sending or receiving the cryptocurrency. Data from Glassnode.com suggested that on Aug. 12, there were 1,021,830 active addresses, which was just around 100,000 lesser than the all-time high in December 2017.

These two metrics are key indicators for Bitcoin's value appreciation. McGlone says the current figure in the 30-day average of Bitcoin addresses is already equal to a price closer to $15,000 when measured on an autoscale basis since 2017, Cointelegraph reports.

Still, McGlone remained bullish on Bitcoin despite the recent price stagnancy. Bitcoin, he said, appeared to be the leader in the shift toward digital money and store of value. It still can fail, he admitted, but that seemed unlikely. "Our graphic depicts primary on-chain metrics that would need to reverse for Bitcoin to not keep appreciating in price — the hash rate and active addresses," he concluded.

bitcoin-plunge-crash-cryptocurrency-ethereum-ripple-blockchain-getty_large Bitcoin Photo: Getty