Jamie Coutts, a crypto market analyst at Bloomberg Intelligence, says that Bitcoin is flashing historic strength in two on-chain metrics while BTC remains at relatively low prices.
Addressing his followers on the social media platform X, Coutts gives an update on Bitcoin’s on-chain activity.
Coutts says that the number of HODLers, or BTC holders who rarely sell, are at all-time highs, and so are transactions on the Bitcoin blockchain.
At the same time, Coutts notes that the median value of each transaction is down 98.4% in the last three years, which he says is its lowest since 2013. All in all, Coutts says that blockchain activity is on the up and up, but BTC’s economic value is “through the floor.”
“Bitcoin on-chain update:
HODLers are at all-time highs.
Transactions are at all-time highs.
Active entities in 85% percentile of last five years.
Value $ moving down 30% in 12 months.
Median Value $7.72 – lowest since 2013!”
Coutts also highlights how Bitcoin inscriptions, which allow BTC holders to embed extra data into individual satoshis, have dominated transaction activity on the Bitcoin network over the last few months, indicating that it is more than just a fad.
“It seems that Inscriptions thang is stickier than many first thought…”
According to Dune Analytics, inscriptions have generated over $56 million in fees for Bitcoin since inception.
While the crypto king is flashing bullish on-chain signals, Coutts notes that BTC is currently under pressure from a lack of global liquidity, which has historically coincided with Bitcoin’s market cycles as they expand and contract.
“Meanwhile the global liquidity contraction (money supply and central bank balance sheets) has slowed, but is still deeply negative. Until this reverses, Bitcoin is unlikely to go higher. Likely lower.”
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