Goldman Sachs Examines Bitcoin And Ether 'Profit-Taking,' On-Chain Metrics In May

Goldman Sachs GS has presented a nuanced analysis of the on-chain metrics for Bitcoin BTC/USD and Ether ETH/USD for the month of May.

The dynamics of Ether balances stayed mostly steady across various group cohorts.

However, there was a noticeable 31% month-over-month decline in Bitcoin addresses holding more than 100,000 BTC, according to the report, cited by Coindesk.

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The Spent Output Profit Ratio (SOPR) for Bitcoin, which provides insights into realized profits, experienced several peaks throughout the month. These spikes reached a high that was last seen in December 2020, leading Goldman Sachs to infer that "a significant amount of profit-taking has occurred in the spot markets."

Bitcoin's presence on exchanges plummeted sharply by 12% in the same period, while there was a minor increase in the Ether supply, the financial titan observed.

The bank also drew attention to the increased network congestion on both the Bitcoin and Ethereum blockchains that was prominent in May.

This resulted in a respective decline of 13.8% and 16.7% in address activity for Bitcoin and Ether as elevated transaction fees discouraged user activity.

Meanwhile, the Bitcoin network's mean hash rate, a measure of the total computational power employed to mine and process transactions, exceeded its previous record high in May.

It recorded a monthly increase of 5.4%, and the revenues of miners rose by 16.4%, the report further added.

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