Amid Bitcoin’s ongoing price correction after trying to recover $70,000 on Monday, a CryptoQuant analyst known as Mac.D highlighted important changes to the fundamentals of the asset network.
This fundamental change in the fundamentals of the Bitcoin network includes the increase in Bitcoin’s hashrate, which has reached an all-time high, marking a significant milestone for the network.
According to Mac.D in a recent post on the CryptoQuant QuickTake platform, the increase in BTC hashrate, which measures the computing power used by miners, suggests “intensified competition” among miners, increasing mining difficulty for unprecedented levels.
The signs: active addresses and mining difficulty
This increase in mining difficulty indicates the growing intrinsic value of Bitcoin. According to Mac.D, for long-term investors, commonly referred to as “SmartMoney,” this makes Bitcoin an increasingly attractive investment.
Historically, a higher hashrate and mining difficulty are positive indicators for the Bitcoin network, reflecting strong miner activity and a safer network. The analyst’s remarks come as Bitcoin has recently experienced a price recovery after months of consolidation.
Another important factor contributing to the positive fundamentals of the Bitcoin network is the increase in active Bitcoin addresses. Mac.D pointed out that the number of active addressesmeasured over 30 days, it has increased steadily since mid-September.
This increase in active addresses indicates greater user engagement with the network as more people send and receive Bitcoin.
#Bitcoin Network fundamentals turn positive
“Bitcoin network fundamentals are exhibiting similar patterns to those seen during previous bull periods. Even if a correction or consolidation phase occurs in the near future, there is a strong probability of a positive trend… pic.twitter.com/XBWCmNymKT
-CryptoQuant.com (@cryptoquant_com) October 23, 2024
Increase in Bitcoin network fees
In addition to the increase in active addresses, Bitcoin’s total network fees have also increased, driven by an increase in transactions on the network. Mac.D noted that this pattern is typical during bullish periods, where a price rise leads to more transactions, increasing network fees.
Rising fees and increase in active addresses point to increased network activity – a positive sign for Bitcoin general health and adoption.
The analyst also compared the network’s current activity to previous bullish periods, noting Similarities in behavior on the chain. The analyst noted:
Even if a correction or consolidation phase occurs in the near future, there is a strong probability that a positive trend will emerge.
Notably, rising hashrate, rising transaction volume, and rising network fees contribute to a more solid Bitcoin ecosystem, signaling that the network is becoming more resilient and attractive to miners and investors.
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