Bitcoin network activity down 30% from highs as ‘tepid’ demand mimics mid-2019

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Demand for Bitcoin (BTC) is currently “slow” just three months after hitting an all-time high, according to blockchain analysis firm Glassnode.

In a tweet on February 18, researchers noted a change in Bitcoin activity on the network just three months ago.

Active Bitcoin Hardware Echoes 2019 “Mini Ball Pick”
Bitcoin’s drop from $69,000 to $33,000 has been accompanied by a massive collapse in the interests of ordinary consumers.

Now the latest data shows that for units in the chain – holders of one or more wallets – the same is true.

About 275,000 active units are traded on the Bitcoin network daily, compared to more than 400,000 units in November 2021.

This halving means that daily active units are now at the same level they were in mid-2019, and even well below the peak of the last halving cycle in December 2017.

“This level of activity is well below peak levels in the beef market, which indicates slowing demand from new users,” Glassnode commented.

The researchers added that regardless of the phase of the cycle, there is an upward trend in the number of devices, so they suggest that the impact of the Bitcoin network is in line with expectations.

Daily active Bitcoin units commented on the chart. Source: Glassnode / Twitter
While the decline in activity in such a short period of time is significant, Cointelegraph reports, the number of wallets is only increasing, with the number of wallets holding 0.01 BTC (about $400) or more currently close to 10 million.

The popular TXMC Twitter account discussed Glassnode’s data and claimed that even if the machines in question were human or not, they still had a reason to send BTC over the network, thus verifying machine numbers at a certain point.

“This level of activity is well below the peak in the beef market, indicating slowing demand from new users,” the report said.

“top and right”
In the latest issue of the “Uncharted” newsletter, Glassnode also confirmed that demand for the network is in an “upward and right” direction.

Related: Bitcoin idle supply near record as over 60% of bitcoin remains unused for at least one year

The daily transfer volume increased in the middle of last year, and the weekly moving average is now doubling from October 2020 before BTC/USD breaks the three-year period.

Since January 2021, long-term fund holders – wallets of funds that have not moved for at least 155 days – have added 3 million BTC to their balances, another sign of a long-term criminal history.

“Enterprises in the market are a sign of broader adoption,” Glassnode founders Yann Allemann and Jan Happel added in Twitter comments last week.

Source: CoinTelegraph

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