Reason behind Bitcoin’s slumping network activity
The post Reason behind Bitcoin’s slumping network activity appeared on BitcoinEthereumNews.com. Bitcoin network activity has trended downward since mid-September. Despite recent headwinds, mining activity on the Bitcoin network continues to grow. With its price oscillating within a narrow range, Bitcoin’s [BTC] network activity has witnessed a consistent decline since mid-September, on-chain data sourced from CryptoQuant revealed. Read Bitcoin’s [BTC] Price Prediction 2023-24 The coin’s transactions count metric, which measures the unique count of transactions executed on the Bitcoin network, assessed on a seven-day small moving average, has fallen to its lowest level since January. According to data from CryptoQuant, as of 13 October, this was 266,000, having registered a 55% decline since 20 September. Source: CryptoQuant In a new report, pseudonymous CryptoQuant analyst MAC_D stated the reason for BTC experiencing a decline in daily transactions count. According to the aalyst, it was because “there were fewer new investments coming into the crypto market, resulting in less liquidity and therefore less price volatility.” When a crypto asset records a fall in its daily transactions count, this is mostly attributable to a decline in the count of daily active addresses on its network. BTC’s unique address count observed on the same seven-day small moving average has declined by over 15% since 19 September. Moreover, the daily count of coins transferred on-chain between BTC holders is currently at its lowest since December 2022. According to MAC_D: “The total number of BTC transferred (Tokens Transferred,14MA) shows that there hasn’t been a meaningful shift between whales and institutional investors, which suggests that the chances of a rally occurring in the near future are low.” However, despite the consistent decline in network activity in the past few months, mining activity on the Bitcoin network has remained optimal. Tagged as “indicators of BTC network fundamentals,” MAC_D noted that BTC’s hashrate and mining difficulty “are trending upwards and remain healthy.” With…
The post Reason behind Bitcoin’s slumping network activity appeared on BitcoinEthereumNews.com.
Bitcoin network activity has trended downward since mid-September. Despite recent headwinds, mining activity on the Bitcoin network continues to grow. With its price oscillating within a narrow range, Bitcoin’s [BTC] network activity has witnessed a consistent decline since mid-September, on-chain data sourced from CryptoQuant revealed. Read Bitcoin’s [BTC] Price Prediction 2023-24 The coin’s transactions count metric, which measures the unique count of transactions executed on the Bitcoin network, assessed on a seven-day small moving average, has fallen to its lowest level since January. According to data from CryptoQuant, as of 13 October, this was 266,000, having registered a 55% decline since 20 September. Source: CryptoQuant In a new report, pseudonymous CryptoQuant analyst MAC_D stated the reason for BTC experiencing a decline in daily transactions count. According to the aalyst, it was because “there were fewer new investments coming into the crypto market, resulting in less liquidity and therefore less price volatility.” When a crypto asset records a fall in its daily transactions count, this is mostly attributable to a decline in the count of daily active addresses on its network. BTC’s unique address count observed on the same seven-day small moving average has declined by over 15% since 19 September. Moreover, the daily count of coins transferred on-chain between BTC holders is currently at its lowest since December 2022. According to MAC_D: “The total number of BTC transferred (Tokens Transferred,14MA) shows that there hasn’t been a meaningful shift between whales and institutional investors, which suggests that the chances of a rally occurring in the near future are low.” However, despite the consistent decline in network activity in the past few months, mining activity on the Bitcoin network has remained optimal. Tagged as “indicators of BTC network fundamentals,” MAC_D noted that BTC’s hashrate and mining difficulty “are trending upwards and remain healthy.” With…
What's Your Reaction?
