Would You like a feature Interview?
All Interviews are 100% FREE of Charge
The number of transactions recorded on the Bitcoin blockchain jumped to nearly 300,000 on Saturday, Jan. 14, the highest level since April 2021, according to data from crypto analytics firm Glassnode. Just a few weeks ago, the number of transactions per day was down to 240,000.
The increase in activity on the Bitcoin blockchain coincides with the recent surge in the price of the world’s largest cryptocurrency by market capitalization. According to Trading View, citing Coinbase exchange data, BTC/USD last traded in the $21,100 range. So the cryptocurrency is currently trading about 28% higher this month.
Traders attribute the rise in bitcoin and the broader cryptocurrency market to macro tailwinds, including easing US inflation concerns after the latest CPI and jobs report, and new evidence of a slowdown in the US economy. I’m here. Bet for this year and next year.
Bitcoin and cryptocurrencies tend to outperform when financial conditions ease, and as a result of macro tailwinds, alternative.me’s Bitcoin fear and greed index has moved from fear to greed for the first time since April last year. Moved persistently (i.e. exceeded 50).
Bitcoin’s recent surge has created a wave of liquidation of short positions. Last Friday he reached $141 million in a single day, his highest in at least three months, according to data from coinglass.com.
According to coinglass.com, the recent rise has slightly increased Bitcoin funding rates across major cryptocurrency exchanges. According to coinglass.com, “A positive funding rate indicates that speculators are bullish and long traders are paying short traders.” However, BTC’s slight uptick in funding rates was small compared to the massive drop in funding rates seen shortly after the collapse of FTX in early November.
What does the surge in transactions mean for Bitcoin’s price?
Some cryptocurrency bulls believe that the recent surge in transactions on the Bitcoin blockchain may reflect increased demand for the token, and this increase in demand is expected to grow in the coming weeks and months. Hoping it could help push the price up. However, other on-chain indicators do not support this theory.
Despite a surge in transaction numbers, the total amount of bitcoin transferred through the blockchain remains close to multi-year lows, according to Glassnode data. on monday the 16thth January remittances were just over $17.3 billion, still well below pre-FTX collapse levels.
While there may be more individual transactions occurring, the data shows that more value is not being transferred through the network. Meanwhile, the number of addresses holding Bitcoin’s non-zero balances has changed little over the past few weeks at just over 43.13 million after plummeting following his FTX collapse a little over two months ago. Is not …
This suggests that the recent surge in transactions was not caused by Bitcoin accumulation by new buyers. are you suggesting?
While not necessarily the case, it does suggest that on-chain data does not yet indicate an imminent continuation of the bull market. points out that Bitcoin’s failure to reconquer the key resistance at $21,500 this week, combined with the highly overbought short-term market conditions, increases short-term profit-taking risk. . It triggered a rally below $20,000 levels.
Below $20,000, analysts will be watching closely how Bitcoin reacts to the 200-day moving average of $19,500 and the retest of the realized price of $19,700. Analysts believe that if Bitcoin manages to rise above both of these key levels, it could signal the end of the 2022 bear market.
