Bitcoin’s network activity is at its highest since 2017 as bulls awaken 🚨 This article is 4 years old...
Bitcoin’s network activity is at its highest since 2017 as bulls awaken
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Updated: Aug. 1, 2020 at 10:35 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin just set fresh 2020 highs today, close on the heels of it posting its highest monthly candle seen since mid-December of 2017.
The robust market structure formed in the time since BTC broke out of its macro consolidation phase isn’t unwarranted, as the recent push higher has been driven by intense fundamental strength.
One such factor that highlights this underlying strength is the crypto’s network activity – which is currently sitting at the highest level seen in over two and a half years.
The economic backdrop that the cryptocurrency is currently trading against may also be creating a tailwind that is lifting it higher, as the world is seeing record-level money printing and low interest rates.
This is causing hard assets like gold and Bitcoin to both see strong price action.
Bitcoin network activity surges to post-2017 highs
Bitcoin’s ongoing upswing led it to fresh yearly highs of $11,800 earlier this morning, putting some significant distance between its multi-month lows of $3,800.
The benchmark cryptocurrency’s overt strength at the present moment reminds many investors of that seen last summer, in which BTC ran from lows of just under $4,000 to highs of $14,800 in a matter of weeks.
Unlike last year, however, this latest rally has come about in tandem with growing fundamental strength.
One metric that elucidates this strength is Bitcoin’s network activity, which is currently at the highest it has been since the period between December of 2017 and January of 2018.
Analytics platform Glassnode spoke about this metric in a recent tweet, noting that there are now 18.7 million unique BTC addresses.
“With 18.7 million unique active BTC addresses in July, Bitcoin network activity is on the rise and at levels not seen in over 2.5 years. In Bitcoin’s history July’s number has only been topped by two months: December 2017 and January 2018.”
BTC is being driven higher by a few key fundamental factors
Alistair Milne – the Chief Investment Officer at Altana Digital Currency Fund – explained in a recent tweet that there are several key factors that are helping to boost Bitcoin’s bull case.
These factors, which have led him to question what the BTC bear case is, include:
- Bitcoin posting its second-highest monthly close ever yesterday
- Record high rates of investors holding BTC for over a year
- Massive global money printing
- Record low interest rates
- Gold reaching fresh all-time highs
- Lack of mainstream media coverage for Bitcoin
The confluence of an ideal economic backdrop coupled with a strong market structure and robust underlying fundamentals are all playing into Bitcoin’s favor.
Bitcoin Market Data
At the time of press 10:35 pm UTC on Aug. 1, 2020, Bitcoin is ranked #1 by market cap and the price is up 3.72% over the past 24 hours. Bitcoin has a market capitalization of $217.21 billion with a 24-hour trading volume of $25.63 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 10:35 pm UTC on Aug. 1, 2020, the total crypto market is valued at at $352.94 billion with a 24-hour volume of $100.56 billion. Bitcoin dominance is currently at 61.54%. Learn more about the crypto market ›
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Glassnode
Glassnode brings data intelligence to the blockchain and cryptocurrency space.
Milne founded his first company aged 17, also working for AOL in 1996.