Bitcoin’s on-chain activity is showing signs of life, which could be a good sign for the cryptocurrency’s price.
More People Are Using Bitcoin
A metric called “Circulation” tracks the number of unique Bitcoin tokens moving on the blockchain each day. This is a better indicator of real activity than just looking at the total amount of Bitcoin being traded, as that can be inflated by the same coins being traded back and forth.
Recently, Bitcoin Circulation has spiked to its highest level in five months. This means more people are actively using Bitcoin, which is often a good sign for the cryptocurrency’s price.
A Familiar Pattern?
The last time Bitcoin Circulation spiked this high was in March, right before Bitcoin’s price surged to an all-time high.
Historically, Bitcoin’s utility tends to increase during bull markets, as more people get interested in the cryptocurrency. This increased activity can then fuel further price increases.
What’s Next for Bitcoin?
While Bitcoin’s price has pulled back slightly after reaching almost $70,000, the recent increase in on-chain activity is encouraging. It remains to be seen whether this will lead to another price rally, but it’s definitely a positive sign for Bitcoin’s future.
