Bitcoin's on-chain activity has been puzzling analysts with its recent decline in transaction counts, UTXOs, and fees. This might initially ring alarm bells about waning demand, but a closer examination reveals a different narrative. As fees plunge to historic lows, an intriguing opportunity emerges, enticing large holders to optimize their UTXO structures. But here's the fascinating twistâwhy does Bitcoin remain priced firmly above $90,000 amidst shrinking on-chain activity? Discover the missing piece in this evolving market puzzleâŠ
Why the drop in Bitcoin UTXOs, transactions, and fees is not bearish Why the drop in Bitcoin UTXOs, transactions, and fees is not bearish
UTXO consolidation amid low fees indicates network efficiency, not waning Bitcoin demand.
3 min read
Updated: Feb. 19, 2025 at 5:32 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.
