Bitcoin’s Network Fundamentals Turn Bullish—Here Are The Details

Samuel Edyme

7 months ago

3 mins read

Bitcoin’s Network Fundamentals Turn Bullish—Here Are The Details

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Amid the ongoing Bitcoin price correction after attempting to reclaim $70,000 on Monday, a CryptoQuant analyst known as Mac.D has highlighted key shifts in the asset’s network fundamentals.

This key shift in Bitcoin’s network fundamentals includes the rise in Bitcoin’s hashrate, which has surged to an all-time high, marking a significant milestone for the network.

According to Mac.D in a recent post on the CryptoQuant QuickTake platform, the rise in BTC hashrate, which measures the computational power miners use, suggests “intensified competition” among miners, driving up the mining difficulty to unprecedented levels.

The Signals: Active Addresses And Mining Difficulty

This increase in mining difficulty indicates Bitcoin’s growing intrinsic value. According to Mac.D, for long-term investors, commonly called “SmartMoney,” this makes Bitcoin an increasingly attractive investment.

Historically, a higher hashrate and mining difficulty are positive indicators for the Bitcoin network, reflecting strong miner activity and a more secure network. The analyst’s observations come as Bitcoin has recently experienced a recovery in price after months of consolidation.

Another important factor contributing to Bitcoin’s positive network fundamentals is the surge in active Bitcoin addresses. Mac.D pointed out that the number of active addresses, measured over 30 days, has risen steadily since mid-September.

This increase in active addresses indicates greater user engagement with the network as more people send and receive Bitcoin.

#Bitcoin Network Fundamentals Turn Positive

“Bitcoin’s network fundamentals are exhibiting patterns similar to those observed during previous bullish periods. Even if a correction or consolidation phase occurs in the near future, there is a strong likelihood of a positive trend… pic.twitter.com/XBWCmNymKT

— CryptoQuant.com (@cryptoquant_com) October 23, 2024

Increase In Bitcoin Network Fees

In addition to the rise in active addresses, Bitcoin’s total network fees have also increased, driven by a spike in on-chain transactions. Mac.D noted that this pattern is typical during bullish periods, where a price rally leads to more transactions increasing network fees.

The rising fees and the surge in active addresses point to heightened network activity—a positive sign for Bitcoin’s overall health and adoption.

The analyst also compared the current network activity to previous bullish periods, noting similarities in on-chain behaviour. The analyst noted:

Even if a correction or consolidation phase occurs in the near future, there is a strong likelihood of a positive trend emerging.

Notably, the increasing hashrate, rising transaction volume, and surging network fees all contribute to a more solid Bitcoin ecosystem, signaling that the network is becoming more resilient and attractive to miners and investors.

Bitcoin (BTC) price chart on TradingView — BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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