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- Bitcoin price rally does not affect transaction volume
- The on-chain activity of BTC is still low since the mid-May market crash
- The transaction volume remained at all-time low levels in the range of 175k and 200k daily transactions
- Bitcoiners are continuing to hodl as per the latest data
- The total supply dynamic of the flagship cryptocurrency has remained quite bullish
Bitcoin price has attracted several globally since last year. Although the performance of the crypto coin was tremendous, it faced a severe crash in mid-May. Amid the crash, the price of BTC has suffered a lot between the range of $30k to $40k. However, in recent weeks the coin has again shown its potential with a 30 days gain of 45%. Still, we have observed that the rally has no effect on transactions, and the on-chain activity is still low. According to the latest data, crypto investors are continuing to hodl their acquired coins.
Bitcoin on-chain activity has not responded
On Monday, Glassnode, a blockchain data analysis provider, published its latest “The Week On Chain” report. Following the report, we have observed that the analytics provider firm has noted that Bitcoin price continued to rally to new multi-month highs. Notably, the price surged despite divergence in its on-chain activity during this weekend.
Moreover, the publication observed that BTC on-chain activity, like the fraction of entity-adjusted transactions, is yet to respond to the ongoing bull cycle. Indeed, the transaction volume remained at all-time low levels in the range of 175k and 200k daily transactions. It is also striking that the activity dropped this low since the recent market crash, and has not climbed above such points since then.
BTC transaction volume was scantily this low
Over the last five years, it has been discovered that the transaction volume of Bitcoin was this tropical only at isolated times. Indeed, such times also include the 2016-2017 bull run, when the price of the coin designed by Satoshi Nakamoto achieved $20k for the first time.
Notably, some similar movements were observed during the 2018-19 bear market as the cryptocurrency’s value plunged by 85% from its all-time high level.
BTC supply dynamics is still bullish
On one hand, the Bitcoiners are witnessing some discrepancies among soaring prices and low on-chain activity. On the other hand, we have observed that the total supply dynamic of the flagship cryptocurrency has remained quite bullish. Glassnode also noted that this week the BTC supply held by long-term hodlers has reached an all-time high of more than 12.5 million Bitcoins. Hence the record surpassed its previous achievement posted in October last year.
