When Bitcoin (BTC) plunged a month ago, activity on the network dropped sharply as investors began putting money into the "storehouse". This trend is reversing as the number of daily transactions is once again skyrocketing and from these numbers we can see the money flow moving.
Does Bitcoin price increase make traders excited?
Glassnode Recently posted a chart of the frequency of the Bitcoin network, showing that the number of transactions on the network has started to accelerate quickly since August last year, only slowly because of the images. Negative effect of prices last month. Now, when the market has started to stabilize, these numbers begin to take off again.
The frequency of the Bitcoin network in general has also increased again after a sharp decline in March, information extracted from Blockchain.info:
What we can draw from these charts is that the largest cryptocurrency market continues to be circulated. Changes in network activity may be relatively small, but they still represent certain fluctuations in Bitcoin.
Undeniably these increases come from the fact that traders have started to become more active, which will certainly occur when prices rise. Many investors see market recovery as an opportunity to make a quick profit from the cryptocurrency market.
It is worth noting that the upcoming halving event is also providing a strong incentive for investors to bet on the growth potential of Bitcoin. In addition, fears of inflation and the global recession continue to be driving many people to put their assets in safe havens, including Bitcoin and some major cryptocurrencies.
Data shows network strength
While the volume of activity on the Bitcoin network is increasing from month to month, it is worth noting that the coin continues to function as it was designed, with low transaction fees, and confirmation time of relatively quickly.
The Bitcoin network will begin to show signs of congestion with approximately 400,000 transactions per day, significantly more than the current figure. This happened once in 2017, resulting in a slower transaction speed and significantly higher fees.
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According to Bitcoinist / Coin68