Bitcoin briefly fell to $9,000, but fundamentals remain strong

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, suddenly fell sharply on Thursday night, plummeting from $9,300 to around $9,000, but the fundamentals of the Bitcoin network remain strong.

For most of yesterday, Bitcoin was trading sideways below $9,300, with little price fluctuation. At around 23:00 Beijing time, the price of Bitcoin suddenly dropped to around $9,000, but then rebounded slightly.

Over the past two months, Bitcoin has been trading in a range between $9,000 and $10,000, with strong resistance above and support below.

However, this decline still wore out investors' patience. Investors had hoped that Bitcoin would be able to stabilize at $9,300 and then continue to hit $10,000.

Earlier on Thursday, Bloomberg analyst Mike McGlone said that Bitcoin's current volatility is decreasing, which may be a precursor to a significant price increase. He mentioned that compared with the highest volatility on March 13, Bitcoin's current volatility has dropped by 97%.

In addition, coupled with the recovery of US employment data and the boost of the US stock market, he believes that Bitcoin will continue to rise and hit new highs before the end of the year.

In terms of the fundamentals of the Bitcoin blockchain network, Glassnode CTO Rafael Schultze-Kraft said that on-chain indicators including transaction volume, number of new addresses, and number of valid addresses make investors optimistic and the fundamentals remain strong.

The number of new Bitcoin addresses per day has reached 256,000, a two-year high. The last time similar numbers were recorded was during the bull run in late 2017 and early 2018. At that time, the number of new addresses per day was between 800,000 and 600,000.

The total number of addresses on the network has now exceeded 670 million. However, only 2,135 addresses have a balance of more than 1,000 BTC, and no more than 110 addresses have a balance of more than 10,000 BTC.

The number of daily active addresses currently stands at 1.08 million, the highest since January 2018, when the record was 1.24 million.

The number of daily transactions on the Bitcoin blockchain is now 382,000, a level last reached about 10 months ago.

The number of transactions processed per second on the Bitcoin blockchain network also reached its highest level in a year. After the third halving last month, the processing rate dropped to 2.48 transactions per second, and now the transaction rate has risen to 4.42 transactions per second.

Image source: pixabay

AuthorLiang Che

This article comes from bitpush.news. Reprinting must indicate the source.