Since the beginning of 2023, the price of bitcoin has been on an upward trend, and this trend has been followed by an increase in trading volumes for bitcoin. Bitcoin’s price has increased by around 70 percent since the beginning of 2023.
Recent weeks have seen an increase in daily trading volumes to more than $70 billion, marking a new high point for the market since the aftermath of the FTX collapse.
The last time I checked, the price of bitcoin was slightly around $28,000, representing an increase of almost forty percent from earlier monthly lows that were below $20,000.
Indeed, Bitcoin trading volumes look to be in a clear upward trend, as evidenced by the recent rise of the 21-day and 50-day Moving Average of volumes above the 200-day Moving Average of volumes, with the former inching closer and closer to its all-time high since the middle of 2021.
Increasing trade volumes occur at times of intense market action, such as during extreme phases of bull and bear markets.
Bitcoin optimists will be holding out hope that the market will continue to operate within the first of these phases.
On-chain Metrics Also in a Positive Trend
Recent Enhancements to Bitcoin Trading Activity on Exchanges come at a Time When On-Chain Data Shows That Activity on the Bitcoin Blockchain Itself Is Also Picking Up In Relatedly Positive Development, recent developments relating to Bitcoin trading activity on exchanges come at a time when on-chain
The number of transactions that take place on the Bitcoin blockchain on a daily basis just reached its greatest level since the beginning of the year 2021, as can be seen in the graphs that are shown below by The Block.
In the meantime, the rise in the number of active addresses on the Bitcoin network during the past several weeks has not been quite as remarkable. Still, the indicator is still very close to multi-month highs.
In other news, the pace at which new addresses are connecting with the Bitcoin network for the very first time has also been rising upwards. This is another positive indicator of the health of the Bitcoin network.
The number of addresses that have a balance that is more than zero is likewise continuing to soar. According to the findings that were published by Glassnode, this statistic just achieved a new high by passing the 45 million mark for the first time.
Financial Crisis Worries Could Send Bitcoin Yet Higher
The analysts feel that the rumblings of a financial crisis might potentially boost the value of the cryptocurrency that has the greatest market capitalization in the world. This is in spite of the facts that there is accumulating evidence from a technical perspective that the Bitcoin market is about to experience a surge in activity in the near term.
Bitcoin has been operating as a safe haven in recent weeks, rising in unison with the price of gold as investors search for alternative currencies that are not susceptible to the collapse of the traditional banking system.
In the event that US Federal Reserve Chairman Jerome Powell makes a gaffe in his communications regarding the prospect of further policy tightening in the wake of Wednesday’s policy statement, this might make the situation even more precarious.
Mike McGlone, the senior macro strategist at Bloomberg, suggests that the recent significant price outperformance of bitcoin in comparison to gold may be symptomatic of the beginning of a new “super cycle.”
McGlone also proposed that recent relative strength compared to most assets may be an indication that Bitcoin is transitioning to trade more like gold and US treasuries (i.e., a safe haven) rather than a risk asset. He made this assertion based on the fact that Bitcoin’s price has been relatively strong in comparison to most assets.
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