2024-10-24 07:00 |
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 DifficultyThis 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 FeesIn 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.
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