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The woes of 2022 that plagued Bitcoin (CRYPTO: BTC) look to have been forgotten as the leading cryptocurrency has climbed more than 65% since the beginning of the new year. Thanks to this rally, optimists are hopeful that this renewed momentum might be enough to officially call for an end to the bear market that saw Bitcoin lose nearly 70% of its value.
To truly evaluate whether Bitcoin has put the latest crypto winter in the rearview mirror, investors need to look at some metrics other than just its price to accurately gauge the likelihood of a bull market on the horizon.
While the purpose of Bitcoin as an investment remains ambiguous, likely due to the variety of roles it is able to play, at its core it is a decentralized payment network. Therefore, by measuring activity on the network in the form of user addresses and transactions, investors can get a glimpse into the health of Bitcoin today relative to other bear and bull market cycles.