Bitcoin is flashing remarkable strength as adoption accelerates, says research firm Glassnode
Market intelligence firm Glassnode says the Bitcoin (BTC) network is showing a lot of strength in two key areas.
In a new analysis report, Glassnode finds that Bitcoin transactions are reaching a level not seen since April 2021.
“The monthly average number of transactions has reached 309.5k/day this week, which is the highest level since April 2021 and a significant break above the annual average. Fewer than 12.2% of all days have seen more transaction activity for Bitcoin , a healthy sign.”
The research firm also says new users entering Bitcoin are rising, reaching more than 120,000 daily, a level only surpassed during the peaks of two previous bull runs.
“Using our advanced clustering algorithms, we can estimate the number of unique new devices operating on-chain as a best estimate of unique new adopters. This metric has reached 122,000 new devices per day, with only 10.2% of days seeing higher adoption rates for new users, namely at the peak of 2017, and during the 2020-21 bull run.”
Glassnode notes that the “hot coin” trend signals that the Bitcoin rally has more room to run as most long-term holders are not selling off. “Hot coins” are coins that have been the subject of transactions during the last seven days, per Glassnode.
“This [hot coins] metric increases primarily when old coins are used and take profit, transferring cheap and old coins to new buyers at expensive prices. Although there has been a small increase in the share of “hot coins”, it is still near cycle lows, again similar to transitional periods after significant bearish trends. This indicates that despite the strong price performance, it is still insufficient to motivate most owners of older coins to take profits.”
Finally, Glassnode says that Bitcoin may have started to enter a new bull cycle after a sustained bear market cycle.
“Bitcoin investors have experienced one of the strongest one-week gains on record amid a backdrop of stress, consolidation and liquidity injection across the global banking system. Multiple on-chain indicators suggest the Bitcoin market is about to exit of conditions historically associated with deep bear markets, and back towards greener pastures.”
Bitcoin is trading at $28,038 at the time of writing.
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