Although Bitcoin (BTC) has risen 45 percent in the past 30 days, new data suggests that crypto investors are making few transactions.
Blockchain analytics website Glassnode released a new weekly report on Monday that said Bitcoin had risen to new multi-month highs despite the divergence in on-chain activity.
The report said that Bitcoin’s on-chain activity, such as the number of transactions it adjusted, still has not responded to the current bull market and remains at historically low levels between 175,000 and 200,000 daily transactions. Bitcoin on-chain activity fell to this low level after the crypto market slump in May 2021 and has not climbed higher since then.
The number of Bitcoin transactions has been few times as low in the past five years. That was also the case during the 2016/2017 bull run, when Bitcoin hit $ 20,000 for the first time. Such a level was also seen in the course of the 2018/2019 bear market, when the Bitcoin price fell 85 percent from its all-time high at the time.
In this context: Bitcoin price at $ 50,000 for the first time since May
Despite the considerable discrepancy between rising prices and the low on-chain activity, the overall supply dynamic is quite positive, as Glassnode continues. Another record was set this week. Long-term owners now hold a total of 12.69 million BTC.
In early August, Glassnode reported that Bitcoin’s 50 percent correction in May was not as alarming as it was in 2018 due to the behavior of the Hodlers.