Amid the ongoing Bitcoin price correction after its attempt to reclaim $70,000 on Monday, key shifts in the asset’s network fundamentals have been highlighted by a CryptoQuant analyst known as Mac.D. These changes include a significant surge in Bitcoin’s hashrate, which has reached an all-time high, marking a notable milestone for the network.
Mac.D, in a recent post on the CryptoQuant QuickTake platform, pointed out that the rise in Bitcoin’s hashrate, which measures the computational power utilized by miners, indicates “intensified competition” among them, subsequently driving the mining difficulty to unprecedented levels. This rise in mining difficulty signifies Bitcoin’s increasing intrinsic value, making it a more appealing investment for long-term investors, commonly referred to as “SmartMoney.”
Historically, higher hashrate and mining difficulty are positive indicators for the Bitcoin network, reflecting robust miner activity and enhanced network security. These observations come after Bitcoin has experienced a price recovery following months of consolidation.
Additionally, there has been a noteworthy surge in active Bitcoin addresses. Mac.D highlighted that the number of active addresses, measured over a 30-day period, has been steadily rising since mid-September. This increase points to greater user engagement, as more people are actively sending and receiving Bitcoin.
Alongside these developments, Bitcoin’s total network fees have also seen an uptick due to a spike in on-chain transactions. Mac.D noted that this pattern is typical during bullish periods, where price rallies lead to an increase in transactions and subsequently higher network fees.
The rising fees and surging active addresses indicate heightened network activity, which is a positive sign for Bitcoin’s overall health and adoption. The current network activity mirrors patterns observed during previous bullish periods, suggesting that even if a correction or consolidation phase occurs shortly, there remains a strong likelihood of an emerging positive trend. The increasing hashrate, rising transaction volume, and surging network fees collectively contribute to a more robust Bitcoin ecosystem, signaling enhanced resilience and attractiveness to both miners and investors.