Bitcoin’s bear market signal and its on-chain impact on institutional investors

During the Bitcoin bear market from 2020 to 2023, institutional investors rely on on-chain indicators such as NVT ratios, miner behavior and changes in wallet security measures. At the end of 2022, NVT soared to more than 1,500, indicating that the valuation was too high, while miners transferred more than $2 billion in funds to cold wallets, indicating strategic increase in holdings. Adoption of multi-signature wallets has increased by 40%, but 1.2 million BTCs are still inactive, reflecting the cautious attitude and long-term holding strategies of institutional investors.