BTC is back-to-back with crypto’s triumphant return! In what could be the start of a new cycle, Bitcoin surpassed the psychological $27,000-mark as it continues to reclaim momentum and on-chain signs pointing to what may be an early bull market on the horizon.
Blockchain analytics firm Glassnode’s report says that the daily transactions of Bitcoin this week saw over 309,500 transactions, the highest since Bitcoin’s peak of $64,000 back in April 2021. On top of that, 122,000 new unique users have been appearing on-chain daily as well, superior to nearly 90% of all other days.
These escalating levels of activity are also a contributing factor to the congestion and rising fees that are being paid to the miners to secure the blockchain. After a string of insolvencies pestered the sector last year, miner revenue is now up to its highest point since June 2022, another factor that confirms Bitcoin’s swing into the bull market.
More coins are in profit it seems, but most HODLers aren’t selling up just yet. The proportion of coins involved in the last week’s activity remain at “near cycle lows,” as Glassnode puts it – indicating a strong conviction that Bitcoin will continue to be relevant in the future of the financial market. This conviction was further bolstered by the recent fall of Silicon Valley Bank earlier in February, leading to the decision from the Federal Reserve to stimulate liquidity back into the economy, a reaction that has been met with both Bitcoin and gold reacting positively.
Glassnode also looked into the market value and the realized value, which has been indicative of coins no longer being discounted on a relative scale to their on-chain market. The ratio of the two measures has risen to 1.36, re-entering its “neutral zone”
The crypto industry may be experiencing turbulence with regards to regulatory pressure, but the signs in the on-chain data suggest that Bitcoin is showing long-term holders’ conviction that prices won’t be suffering too badly. Nearly 4.3 million BTC have been added within the 6-month time-frame, and with almost 15 million BTC held that has not moved for over 6 months, it indicates that old hands are still HODLING, unwilling to let go of their strong convictions. Most recently, Bitcoin briefly soared above the $25,000 barrier and since then, it’s been on a steady upwards trend, gaining an impressive 14% over the past two weeks.
It’s hard to tell whether this new wave of Bitcoin activity is here to stay, but by the looks of things, the increasing on-chain activity and traders continuing their HODLing is a sign that the Bitcoin bull market is officially back in business, reclaiming its positive connotations and clinching its position as a strong asset in the financial game.