Growth across key BTC network metrics has remained quiet in the last few days despite a significant jump in its price. The total number of BTC transaction counts and new Bitcoin entities are not growing at the same pace as its price.
Overall, the total number of transactions per day across the Bitcoin network remained well below the peaks seen in H1 of 2021. Currently, the transaction count stands at 225,000/day compared to a peak of 325,000/day in January 2021.
In terms of new entities, the figure currently stands near 110K per day, compared to 180K per day in January 2021. Since the start of 2021, the price of Bitcoin has increased by more than 140%.
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“A very modest uptrend is in play with new entities hitting 110k per day. Again, this is barely above levels sustained throughout the 2019-20 bear market, where activity was between 90k and 110k new entities per day. This observation of prices near ATHs, whilst on-chain activity is near bear market lows is quite a remarkable divergence. It speaks to a convincing case where the market is likely still in the quiet accumulation phase, punctuated by low activity, large exchange outflows, and very modest strategic spending by experienced holders,” Glassnode highlighted.
Bitcoin at an All-Time High
Yesterday, BTC touched an all-time high of $68,500. Despite slow growth across its network, Bitcoin is still the most favorable asset of large institutional investors.
“A new Bitcoin all-time high is always a good moment to pause and celebrate, especially that the price action corresponds to ARK36’s earlier predictions. However, given the current market conditions, both in terms of broader market fundamentals and on-chain activity, we can reasonably say this is just a start of a more sustained uptrend we’ll see develop throughout the month and perhaps even up until the end of Q4,” Mikkel Morch, Executive Director at ARK36, said.
