In the digital currency market, Bitcoin has always played a pivotal role. On March 12, 2022, the price of Bitcoin experienced a sharp plunge, but then gradually recovered. This fluctuation has aroused widespread attention to the trend of the digital currency market. This article will conduct an in-depth analysis of the on-chain Bitcoin data in March to explore the road to recovery behind the plunge.

 Background analysis of the Bitcoin price plunge

On March 12, the price of Bitcoin fell sharply, triggering market fluctuations. This fluctuation is not an isolated incident, but the result of multiple factors. From a macro perspective, the uncertainty of the global economic situation, policy adjustments, and fluctuations in investor sentiment have all affected the price of Bitcoin. Behind this plunge, there are many complex factors that require us to dig deeper.

 Analysis of the driving force behind the gradual recovery of Bitcoin prices

However, it is worth noting that after the plunge, the price of Bitcoin gradually showed signs of recovery. In this process, some driving forces have emerged. First, technical support plays a vital role. As a decentralized digital currency, Bitcoin's technical foundation and network stability play a key role in the recovery of prices. Secondly, the recovery of market demand has also provided strong support for Bitcoin prices. Investors' demand for digital currencies is gradually increasing, and this growth in demand helps to drive the gradual recovery of Bitcoin prices.

 Interpretation of Bitcoin Data on the Chain in March

Through the analysis of Bitcoin data on the chain in March, we can have a clearer understanding of the operation of the digital currency market. The on-chain data not only reflects the liquidity and trading situation of Bitcoin, but also reveals the behavioral characteristics of market participants. Through the interpretation of on-chain data, we can better grasp the pulse of the market and seize investment opportunities.

 Enlightenment of Bitcoin Price Fluctuations to Investors

The plunge and gradual recovery of Bitcoin prices have given investors some inspiration. First, investors need to maintain a keen sense of the market and grasp market changes in a timely manner. Secondly, they must have a strong ability to identify risks, plan their investment portfolios reasonably, and diversify risks. Finally, they must remain rational, not be swayed by short-term fluctuations, and establish the concept of long-term investment.

 Conclusion

As the leader of the digital currency market, Bitcoin's price fluctuations have always attracted much attention. After the plunge on March 12, Bitcoin prices gradually recovered, showing strong resilience. Through in-depth analysis of Bitcoin data on the chain, we can better understand the operating laws of the market and seize investment opportunities. Investors should remain calm and rational when facing market fluctuations and make wise investment decisions. I hope every investor can get rich returns in the digital currency market and start the journey of wealth growth.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to CoinDesk data, in March 2020, after a period of periodic high-level fluctuations, the price of Bitcoin plunged and fell rapidly on March 12, resulting in the recent famous "3.12 crash". Due to the growth of contract trading volume in the past year, this unexpected crash also caused a large number of contracts to be liquidated, huge wealth evaporated, and caused panic in the industry for a while.

Since then, the price of the currency has gradually stabilized and rebounded, but market sentiment is still cautious. Along with this shocking market, Bitcoin's on-chain transactions also fluctuated greatly throughout March, fully reflecting this linkage with Bitcoin prices. Next, let us review and analyze the on-chain data in March to see what stimulated the on-chain storm in March.

In March 2020, the transaction volume of Bitcoin on the chain was 33785430.55BTC, an increase of 17.11% compared to 28849656.86BTC in February 2020. At the same time, we also need to see that March has two more natural days than February. From the specific trend, in early March, the on-chain activity was even lower than that in February, but the price plunge on March 12 changed the overall trend. The main increase this month compared to February also occurred between March 12 and March 14.

In March 2020, the actual transaction volume on the Bitcoin chain was 21704334.79 BTC, up 16.21% from 18677488.12 BTC in February 2020. The actual transaction volume we define excludes Bitcoin that has not been actually transferred out, such as "change" in transactions, which is relatively more accurate.

From the comparison of Bitcoin prices and transaction volumes in the past two months, the sharp drop in the price of the currency on March 12, 2020 was a watershed. Before that, the on-chain transaction volume was relatively stable. After the price plummeted, the on-chain transaction volume rapidly increased, but it quickly fell back after stabilizing. From the perspective of the on-chain transaction volume in March, it is also fully demonstrated that its changes have little to do with the high or low Bitcoin prices, but are closely related to the magnitude of changes in Bitcoin prices.

The number of large transfers on the chain in March 2020 was 45,266, up 25.16% from 36,166 in February 2019. The impact of the price plunge on March 12 on the number of large transfers lasted longer than the transaction amount.

Compared with the price of Bitcoin in the same period, the number of large transfers was not high before the price plunge, but it quickly increased afterwards. From the perspective of correlation with prices, the continuous events were also longer than the transaction amount on the chain. It can be seen that when the price plunge just occurred, there were more participants on the chain, and then mainly exchanges and other institutions, which often merged on the chain in large amounts to save mining fees.

In March 2020, the total number of Bitcoin on-chain transactions was 8,899,912, down 6.01% from 9,468,704 in February.

Comparing the number of on-chain transactions with the price of Bitcoin in the past two months, we can also see the phenomenon that can be related to the previous data, that is, the number of transactions has not increased due to the decline in the price of the currency. It can also be seen that in terms of on-chain transactions, the participation of individual traders is still relatively low, institutions are still important participants, and a large number of investors' digital assets are still stored in centralized exchanges.

Let's take a look at the number of active addresses, that is, the number of addresses that actively initiate transfers. The number of active addresses in March 2020 was 14,871,210, a slight increase of 2.02% from 14,576,714 in February 2020.

Comparing the number of active addresses and the price of Bitcoin in the past two months, the impact of the sharp drop in the price of the currency on the active addresses is relatively limited, and it has not caused much change.

From the overall on-chain data, the plunge on March 12 reflected the characteristics of a surge in on-chain transaction volume and continued high levels of large exchanges, but at the same time, active addresses and transaction times did not increase synchronously. The reason for this has been explained in other related analysis articles. The exchange is still the center of the current Bitcoin ecosystem, especially transactions. The price of Bitcoin itself is also formed in the on-site transactions of the exchange. Therefore, when the price of the currency first plunges in the exchange, more assets will obviously be traded in exchanges with stronger liquidity.

Around the exchange, related on-chain transactions will naturally be carried out according to the rules and mechanisms of the exchange. The typical example is the user's withdrawal of coins. Even if more withdrawals occur during market fluctuations, most exchanges will merge their large withdrawal requests into one on-chain transaction. This has resulted in an increase in large transactions, while the number of on-chain transactions and active addresses have not increased significantly. It can be seen that the exchange's leading position in the market is not only reflected in on-site transactions, but also affects the trend of on-chain transactions.

Finally, let's take a look at the distribution of addresses with different Bitcoin balance ranges at the end of each month:

There are 1.571.806 addresses with a balance greater than or equal to 1 BTC

There are 31.447 addresses with a balance greater than or equal to 100 BTC

There are 3.374 addresses with a balance greater than or equal to 1000 BTC

There are 155 addresses with a balance greater than or equal to 10,000 BTC

Next, please continue to pay attention to the second part of "On-chain Data March Scan" to see the details of the Bitcoin inflows and outflows of the three giants, , and , from the perspective of Bitcoin on-chain data.