{"id":380353,"date":"2019-05-01T12:00:53","date_gmt":"2019-05-01T12:00:53","guid":{"rendered":"https:\/\/uniquehot.com\/?p=380353"},"modified":"2024-06-11T07:39:59","modified_gmt":"2024-06-11T07:39:59","slug":"bitcoin-blockchain-data-indicates-crypto-bull-market","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-blockchain-data-indicates-crypto-bull-market\/","title":{"rendered":"Bitcoin Usage Spikes as BTC Price Surges 43% YTD; Bullish Indicator?"},"content":{"rendered":"

By many measures, the past few months have been absolutely monumental for the crypto. Facebook, Samsung, HTC, among other technology giants have doubled-down on blockchain. Fidelity<\/a> and E*Trade are both rumored to soon be offering spot Bitcoin (BTC) trading, as Nasdaq and the Intercontinental Exchange (through Bakkt<\/a>) look to launch cryptocurrency futures. And big names in venture capital continue to throw their weight behind the industry.<\/p>\n

Related Reading: BKCM CEO: Crypto Winter Coming to an End As Bitcoin Fundamentals Turn Positive<\/a><\/h6>\n
All these industry developments would be deemed moot, if Bitcoin, or other cryptocurrencies for that matter, aren’t being used for their intended purpose. But blockchain data shows that cryptocurrencies are still being actively used, potentially confirming that the trifecta of indicator types \u2014 fundamental, technical, and quantitative (statistical) \u2014 are implying that BTC could soon rally.<\/p>\n
Bitcoin Usage Spikes As BTC Recovers<\/strong><\/h2>\nIn a recent edition<\/a> of Diar Newsletter, the publication revealed that as per data from TokenAnalyst, real Bitcoin usage (sans change transactions) is starting to trend dramatically higher. While the count of BTC transacted on-chain in Q1 of 2019 is the lowest since Q2 of Q3 of 2017, Diar notes that as of the end of April, the U.S. dollar value of BTC and the number of BTC transacted is up three months in a row.<\/p>\n
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Chart Courtesy of Diar<\/figcaption><\/figure>\n
For some perspective, in February, $70.5 billion worth of value and 19.1 million BTC were transacted using the Bitcoin blockchain. These same indicators now read $132.6 billion and 25.7 million, respectively \u2014 an increase of 88% and 34.5% in a three-month time span. Explaining growth further, Diar’s editorial team wrote:<\/p>\n
“Coins moved on-chain outpaced dollar value hitting a 14-month high in April. With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of BTC averaged $7,000 \u2013 35% higher than today.”<\/p><\/blockquote>\n
Diar postulates that this increase is primarily a result of increased speculative interest, but this does not null the fact that BTC is still being actively used as a decentralized, cross-border, low-fee, and censorship-resistant medium of exchange \u2014 one of its primary premises.<\/p>\n
Related Reading: What Makes Bitcoin So Tantalizing To Own And Use? Industry Execs Weigh In<\/a><\/h6>\n
So what effect will this increase in on-chain volume have on Bitcoin’s price? According to researcher Willy Woo, who cites historical precedent, the surge in Bitcoin use and similar action in other statistics could indicate that the final bottom is in and that a bull run is on the horizon.<\/p>\n
The investor, who recently revealed<\/a> that he is 95% that a long-term floor for the crypto market was hit in December, noted that his Network Value to Transactions (NVT) Caps indicator, which aims to determine Bitcoin’s velocity of money, is currently looking as it did in mid-2015. If the NVT Caps sees a “fractal repeat,” BTC may near $3,150 (but not fall below) it, prior to embarking on a rally later this year.<\/p>\n
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NVT Caps starting to pinch gives us a clue to where we might be located in the current cycle. <\/p>\n
Sharp observers may notice NVT Caps pinching in a fractal repeat at the capitulation of early 2015 and proposed capitulation of late 2018. pic.twitter.com\/oivu2rhpeC<\/a><\/p>\n
— Willy Woo (@woonomic) April 28, 2019<\/a><\/p><\/blockquote>\n