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What new highs in daily Bitcoin transaction activity means for investors

Sep 04, 2018

  • Bitcoin’s 7-day moving average of daily transactions sits at 224,021 as of 09/02/18, the cryptocurrency's highest level for daily transactions since its price crashed in January 2018. 
  • Transactions per day is an important metric in cryptos as it measures demand and is an indirect measure of the veocity of Bitcoin's market value.
  • Steady growth in transaction activity is an especially positive indicator in assessing a crypto’s price, as infrequent spikes in transaction activity could simply mean traders are profit-taking.
  • Since 6/29/18, Bitcoin’s daily transactions have increased 21.5% in a relatively consistent manner. 
  • BTC’s price broke past the $7,000 barrier on Friday and is currently trading at US$7,380.44.
  • Growing transactions/day are a result of increased demand for BTC, positive investor sentiment, and a healthy mining supply. Steady growth in transactions/day may serve as an early indicator of a large BTC price breakout.

 


Source: Blockchain.com