Bitcoin network activity shows bullish trend after 3month dip
The Bitcoin (BTC) network has seen a decline in activity, with daily active addresses dropping since March. However, a recent uptick in this metric signals a renewed interest in using Bitcoin, potentially driving up demand for BTC.
Renowned on-chain analyst Ali Martinez noticed the breakout of the downtrend in daily active addresses on June 8, as reported by Santiment. Martinez pointed out that 765,480 Bitcoin addresses became active in the last 24 hours, indicating a positive sign for a continuation of the bull run.
The number of daily Bitcoin addresses has broken the downtrend that began on March 5! In the past 24 hours, 765,480 BTC addresses were active. This surge in network activity is a positive sign that the BTC bull run will continue.
In addition, other Bitcoin network activity metrics have shown a decline. For instance, Finbold reported an all-time low in on-chain transaction volume and a yearly low in spot trading volume for the leading cryptocurrency.
Bitcoin transaction fees hit a new all-time high of $195 on June 8, coinciding with the increase in network activity reported by Martinez. This spike may be related to the higher number of active addresses competing for limited block space, leading to users outbidding each other for transaction confirmations.
Furthermore, exchange reserves are at their lowest levels, indicating that investors are buying and withdrawing Bitcoin. This is seen as a bullish signal by Martinez, as it suggests increased confidence in the cryptocurrency.
As the FOMC meeting on June 12 approaches, the cryptocurrency market, stocks, and overall finance market are anticipating potential volatility based on the interest rate target decision. Analysts are closely monitoring these developments to assess their impact on Bitcoin.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies carries risks, and capital is at risk when investing.
