- Despite the massive price increase, BTC withdrawals from the exchanges were relatively low.
- Activity in the Bitcoin ecosystem continued to decline.
Bitcoin [BTC] has seen an unexpected price increase in recent days, raising hopes among traders and holders. Due to the increasing optimism, addresses held on to your BTC.
The number of admissions is decreasing
A small withdrawal of Bitcoin took place yesterday, with 10,000 BTC leaving exchange wallets. The total value of the withdrawn Bitcoin is estimated at approximately $630 million.
This strong demand for Bitcoin signals a potential revival of interest in the cryptocurrency market.
Analysts note that the level of consistent demand for Bitcoin has not been this high since the end of 2020, marking a significant shift in investor sentiment.
Source:
At the time of writing, BTC was trading at $67,049.74 and the price was down 0.74% over the past 24 hours. Most holders of BTC were profitable as BTC was only $6,000 dollars away from its all-time high.
The speed at which BTC traded had decreased. This meant that the frequency with which BTC traded had decreased.
While this can be seen as a negative sign for BTC, a declining rate also meant that many addresses held on to their Bitcoin and refused to sell.
Furthermore, the total number of BTC holders has also increased dramatically, indicating that a large number of addresses have accumulated significant amounts of BTC.
In combination with the increasing number of holders, an opposite pattern was seen in the mining companies. AMBCrypto’s analysis of Santiment’s data showed that the supply of miners had dropped significantly.
This could prove to be positive for BTC in the long run. If miners fail to generate large amounts of fees, it will be difficult for them to remain profitable.
To keep their business sustainable, they sometimes resort to selling off their assets, which ultimately increases the selling pressure on BTC.
A lower supply of BTC in the hands of miners means that these sections of holders would have less impact on the price of BTC in the future.
Source: Santiment
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Activity decreases
One of the reasons why miners fail to generate fees is due to inactivity on the network. In recent weeks, the number of daily active addresses on the Bitcoin network had dropped.
Coupled with this, the number of NFTs traded on the network also fell. This suggested a decline in interest in the Bitcoin ecosystem.
Source: Santiment