The long -term key figures of Bitcoin resemble early phases of earlier bull markets: Bitfinex

The long -term key figures of Bitcoin resemble early phases of earlier bull markets: Bitfinex

as speculators in droves in bract BRC-20-tokens on text inscriptions, the Bitcoin blockspace has experienced an explosive increase in demand in recent weeks.

This dramatic change in network activity led to an increase in transaction fees to a level that has not been achieved in the past two years.

signs of overload

In a new report published by Bitfinex, it was found that the introduction of BRC 20 and Bitcoin-based smart contracts transforms the blockchain from its traditional reputation as a "simple digital currency book" into a "more dynamic, smart contract-capable chain".

Data indicates that BRC-20 tokens made more than 60 % of all transaction activities on Bitcoin blockchain last week and made up almost 43 % of all fees.

However, the quick popularity of BRC-20 and the subsequent increase in fees have loaded other key figures. Active and new addresses that interact with the network approach the two-year or annual low. Such a trend could possibly indicate that higher transaction fees are likely to deter new and existing Bitcoin network users.

The report added that higher transaction fees probably prevented the increase in new Bitcoin addresses, but have improved the health of the network. The short increase in mining revenue was certainly a welcome relief for the network miner after the brutal bear market in 2022. So much that Bitcoin-Miner achieved a total of $ 17.75 million on May 8th

long-term Bitcoin indicators

In the short term, the events of the past week, including Binances the youngest double stop of the Bitcoin withdrawals, seem to have a negative impact on the mood for flagship crypto-assets. Therefore, the short-term key figures still indicate a possible decline in the Bitcoin price.

When zooming out, however, the long-term on-chain indicators appeared cheaper and resembled the early stages of the previous bull markets. It was observed that a strong bullish sign for the market was that the Bitcoin trade was well above its sliding 200-day average and its realized price.

Another positive sign was the Bitcoin Realized Hodl Multiple, which has been on an upward trend in the past 90 days. This essentially indicates that the assets, which are stuck to USD, move back towards new inflows of demand. In such a case, "the market is able to absorb profits even when they are realized."

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