Strong Fundamentals: Bitcoin Daily Transactions Return to Bull Run Levels

Tony "The Bull" Severino

6 years ago

3 mins read

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During the 2017 Bitcoin bull run and meteoric rise to its all-time high price of $20,000, hype and irrational exuberance created a bubble effect, that later popped and led to a the longest bear market on record.

The resulting aftermath of the bubble effect has brought Bitcoin to new lows and the market into a state of depression and anger, with many claiming that crypto is dead, and have little to no use case driving its value. However, an argument can be made that Bitcoin is now fundamentally stronger than in late 2017, and daily transactions have again began to reach levels not seen since November 2017 when its price went parabolic.

Daily Bitcoin Transactions Revisit Bull Run Levels

Because Bitcoin hasn’t fully realized its potential as a store of value or global currency for the internet as many believe it will eventually become, analysts often look to fundamentals such as the amount of wallets and daily transactions to determine its value. From that perspective, Bitcoin is fundamentally stronger than it has been over the past year of bear market.

Following December 2017’s price peak, daily transactions fell below 300,000 per day in mid-January and since then, Bitcoin has struggled to return to the levels previously seen during last year’s bull run. Many pundits suggest that it was the growing amount of transactions that led to the network becoming congested, which made transaction fees sore and put a spotlight on how the first-ever cryptocurrency wasn’t yet ready for public consumption on a wide scale.

Over a year later, daily transactions have finally reached over 300,000 yet again, returning to levels not seen since December 2017, according to blockchain data from BitcoinVisuals.

Pantera Capital CEO: Fundamentals Are Much, Much Stronger

Despite Bitcoin transactions picking up again, fees remain low and the network uncongested thanks to further adoption of the SegWit second-layer protocol upgrade. The recent growth of the Lightning Network – another second layer technology – has only further improved Bitcoin’s value proposition from a fundamental perspective.

The return to mean witnessed in Bitcoin transactions coupled with a smoother-running network thanks to advances in Bitcoin development prove that the number 1 crypto by market cap is much stronger fundamentally than December 2017 when media attention was at its boiling point.

On Unconfirmed, @dan_pantera of @PanteraCapital explains why this crypto bear market is different from the one that began in 2014, what he believes will give institutional money the confidence to enter the space, and where innovation is happening. https://t.co/cGUdxidL8o

— Laura Shin (@laurashin) February 1, 2019

Dan Morehead, outspoken CEO of crypto investment firm Pantera Capital agrees, saying that Bitcoin and crypto’s “underlying fundamentals are much, much stronger” now than they were in the previous “crypto winter,” referring to the 2014-2015 bear market that the current one has now outpaced for the longest ever on record since cryptocurrency was first introduced.

“In the previous one, I had more of a worry in the pit of my stomach about whether blockchain was actually going to work. There were real regulatory risks,” he added.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.