Market intelligence firm Glassnode says that the Bitcoin (BTC) network is showing a lot of strength in two key areas.
In a new analytics report, Glassnode finds Bitcoin transactions are reaching a level not seen since April 2021.
“The monthly average of transaction counts has hit 309.5k/day this week, which is the highest level since April 2021, and a significant break above the yearly average. Fewer than 12.2% of all days have seen more transaction activity for Bitcoin, a healthy sign.”
The analytics firm also says new users entering Bitcoin are soaring, 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 entities operating on-chain as a best estimate for unique new users. This metric has reached 122,000 new entities/day, with just 10.2% of days seeing higher new user adoption rates, namely at the 2017 peak, and during the 2020-21 bull run.”
Glassnode notes that the “hot coin” trend is signaling the Bitcoin rally has more room to run as most long-term holders are not selling off. “Hot coins” are coins that were subject to transactions within the past seven days, per Glassnode.
“This [hot coins] metric primarily increases when old coins are spent and take profits, transferring cheap and old coins, to new buyers at expensive prices. Whilst there has been a slight uptick in the proportion of ‘hot coins’, it remains close to cycle lows, once again similar to transitional periods following significant bearish trends. This indicates that despite the strong price performance, it still insufficient to motivate most owners of older coins to take profits.”
Lastly, Glassnode says Bitcoin may have started to enter a new bull cycle after an enduring bear market cycle.
“Bitcoin investors have experienced one of the strongest one-week gains on record, amidst a backdrop of stress, consolidation, and liquidity injections across the global banking system. Several on-chain indicators suggest that the Bitcoin market is transitioning out of conditions historically associated with deep bear markets, and back towards greener pastures.”
Bitcoin is trading for $28,038 at time of writing.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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