ByteTree CEO James Bennett believes that the growth of the Bitcoin price is unlikely, he considers the opposite more likely to happen. The reason for this conclusion was the network activity falling sharply for the past months.
Bennet’s analysis notes that weekly Bitcoin transactions have plummeted since April and now amount to about 1,48M transactions, which is below the January 9 high of 2,57M. This affected the decrease in the cost of transactions on the Bitcoin network to $23.6B, the lowest point since December 2020.
As for the velocity of Bitcoin, the indicator fell to a record low of 195% on July 11, which forms a significant difference from the maximum of 593% on May 23. According to Bennett, the velocity is “a non-price indicator and measures the vibrancy of the Bitcoin network”.
“In the second half of last year, July through to December, velocity was picking up and subsequently price followed. As velocity has fallen through the year, price has followed again.” Bennett said in his analysis.
He also noted positive manifestations on the market – a surge in the accumulation of miners. The figure has decreased due to the harsh measures of the Chinese government in the process of the crypto asset mining.
Bennett suggested that miners are accumulating BTC reserves again, since the statistics started to grow, it can be concluded that the price may be in the process of stabilization.
At the moment, Bitcoin is traded at $31,9K, over the past day it has varied between $31,7K and $33,2K.