Amidst Bitcoin's recent price surge, a puzzling trend has emerged. While such increases typically accompany a rise in network activity, the opposite is true this time. The 30-day SMA of new addresses has plummeted, as has the transaction count. But what does this divergence signify? Is Bitcoin's value truly reflective of on-chain usage? Our analysis uncovers a startling possibility - the potential dominance of speculative trading... But is this the whole truth? Could there be unseen forces at play, shaping Bitcoin's destiny beyond the realm of network activity alone?
Bitcoin’s price surge not reflected by on-chain activity Bitcoin’s price surge not reflected by on-chain activity
In light of reduced on-chain activity, Bitcoin's recent surge in price may be attributable to speculative trading on exchanges.
2 min read
Updated: Oct. 27, 2023 at 5:18 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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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.