While the supply of #Bitcoin is becoming more illiquid, which is good, network activity remains relatively low and partially even decreases further. A thread on network activity.
Considering the total on-chain transaction value of $BTC since mid-2021 it has been low.
Considering the total on-chain transaction value of $BTC since mid-2021 it has been low.
The value transacted on-chain has been picking up a bit on the second price peak in late 2021 but remained below that of the first peak. Currently it is closer to the capitulation levels after #Bitcoin's first ATH in 2021
Note: I am using data from @ByteTree here, as they e.g., exclude complex transactions such as Coinjoin transactions, etc., which artificially inflates the value transacted on-chain.
The total amount of transactions happening on-chain is also significantly lower now than it has been during the first half of 2021 and has even decreased a bit more recently.
The drop in activity can also be seen in the addresses sending #bitcoin to and receiving from exchanges. Both metrics have declined further since I posted about it on Feb 10.
https://twitter.com/JanWues/status/1491740858688933893?s=20&t=Ymh_85lB87bq8eQhh9liiA
The mempool also remains largely empty since mid-2021. While some of that might be related to more efficient use of batching of transactions by exchanges etc. It fits into the picture of a decline in network activity.
Considering #Bitcoin exchange real trading volume from @MessariCrypto trading activity has also been relatively low lately.
On the positive side, supply keeps getting more and more illiquid, and long-term Holders are quietly accumulating #Bitcoin.
https://twitter.com/JanWues/status/1494287665784623106?s=20&t=Ymh_85lB87bq8eQhh9liiA
To summarize:
While #Bitcoin does not have a supply problem, it currently has a demand problem.
It needs a new catalyst to spur demand such as e.g. another country making bitcoin legal tender, a big company adding $BTC to their balance sheet, or the FED reversing course.
While #Bitcoin does not have a supply problem, it currently has a demand problem.
It needs a new catalyst to spur demand such as e.g. another country making bitcoin legal tender, a big company adding $BTC to their balance sheet, or the FED reversing course.
With the right catalyst, sentiment might improve quickly and demand might shift quickly as well.
But as always, also keep the macro-situation in mind. A wrong shift on the macro level might have the opposite effect short-term.
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