{"id":12010,"date":"2022-01-13T02:00:00","date_gmt":"2022-01-13T02:00:00","guid":{"rendered":"http:\/\/ci02970eaf3000275d"},"modified":"2025-01-29T12:57:14","modified_gmt":"2025-01-29T12:57:14","slug":"how-is-bitcoin-on-chain-activity-reflecting-the-price","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/how-is-bitcoin-on-chain-activity-reflecting-the-price","title":{"rendered":"How Is Bitcoin On-Chain Activity Reflecting The Price?"},"content":{"rendered":"
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The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <\/em>subscribe now<\/a><\/a><\/em>.<\/em><\/strong><\/p>\n

In today\u2019s Daily Dive, we\u2019re covering the latest state of on-chain activity across transactions, volume, active addresses and entities. Typically higher activity comes with a rising price and vice versa. <\/p>\n

When it comes to analyzing overall transfer volume of the network denominated in BTC, change-adjusted volume is one that we\u2019ll focus on. That\u2019s different from both total transfer volume and entity-adjusted volume estimates, which don\u2019t account for transaction change and filter out volume sent within the same entity. Currently, the network is settling around 593,000 bitcoin per day.<\/p>\n

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Typically around all-time highs, there\u2019s a rise in BTC-denominated volume. Here we can see the most recent rise over the last three years using a 90-day rolling sum of volume. The latest increase doesn\u2019t show up as a spike in entity-adjusted transfer volume so most of the rise looks to be driven by internal transfers. <\/p>\n

Generally, we would expect BTC-denominated transfer volume on-chain to fall over time with rising Lightning Network adoption and rising USD value. More total value can transfer on the network in lower BTC amounts. Currently the median change-adjusted transfer volume is $457.50.<\/p>\n

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In previous bull markets and at all-time highs, miners were making a much higher percentage of revenue from transaction fees. Now at the latest all-time highs, the percentage of transaction fee revenue remained below 2%.<\/p>\n

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Some activity indicators to track, which generally move together on the network, are active addresses, active entities and number of transactions. Acceleration in these metrics typically correlate with a rise in price. All were in an accelerating trend since July, peaking in November.<\/p>\n

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Typically, higher on-chain Bitcoin activity comes with a rising price and vice versa.<\/p>\n","protected":false},"author":2736,"featured_media":4281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[85,1403,708],"class_list":{"0":"post-12010","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bitcoin-magazine-pro","9":"tag-on-chain","10":"tag-transactions"},"author_data":{"id":2736,"name":"Dylan Leclair And Sam Rule","nicename":"dylan-leclair-and-sam-rule","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/2b6b26c44e1d269b6e0f99be25243a520901d88fba7899ea664ee1c543b3ff6d?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/img_6842.png","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/12010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2736"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=12010"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/12010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/4281"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=12010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=12010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=12010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}