In recent times, the price of Bitcoin has been on an overall surge taking the asset’s value to its 9-month high. The asset’s value recently crossed the $28,000 mark, surpassing its 9-month high and showing signs of the early bull market.
According to data from Glassnode, an on-chain analytics firm, Bitcoin network activity is rising in a fashion similar to previous early-stage bull markets. Its report cited that a growing number of on-chain signs show the asset may be entering an early bull market. The blockchain analytics firm published its weekly report on Monday, in which it said the Bitcoin market “appears to be shifting gears” amid turmoil within the traditional banking system.
As per on-chain data, Bitcoin’s monthly average transaction count has reached 309.5k/day this week. Notably, this transaction volume reached its highest level since the asset surged to it’s-all time high of $64,000 in April 2021. Less than 12.2% of all days experience more trades than this.
Meanwhile, over 122,000 new entities (the best estimate for unique new users) have been appearing on chains every day, which is higher than nearly 90% of all other days. Most of those days were concentrated around Bitcoin’s price peak in late 2017, and the 2020-2021 bull run.
Glassnode points out that the increasing interaction within the asset’s economy indicates periods of increasing adoption along with several other factors. The firm says that rising activity is also driving network congestion and fee pressure, which it calls “a common precursor to more constructive markets.” As stated in the report:
“As more people interact and transact within the Bitcoin economy, it is typically associated with periods of increasing adoption, network effects, and investor activity.”
While high network fees can make small transactions more costly, they’re also an advantage to miners, who are receiving those fees for securing the blockchain. Following a chain of insolvencies that struck the industry last year, miner revenue has now returned to its highest point since June 2022.
The revenue is reported to be around $22.6 million/day, which can be counted as another encouraging sign that the asset is back in the bull phase.
Glassnode also delved into the indicator named Bitcoin’s market value to realized value (MVRV) ratio. The MVRV is a measure of the unrealized profit multiple held within the coin supply, which has currently risen to 1.36.
After crossing the $28,000 level this week, Bitcoin’s MVRV ratio returned to its “neutral zone,” indicating that the asset’s prices are “no longer heavily discounted relative to the average on-chain market cost basis.”
However, the proportion of “hot coins” which is a phrase to refer to coins transacted within the past 7 days, still remains “close to cycle lows. This indicates that even though more coins are in profit, most of the hodlers are choosing to not sell their stash.
Glassnode concluded its weekly report on a positive note from the outputs of the highlighted indicators. It stated:
Few longer-term investors appear to be motivated to take profits into this rally, signaling a remarkable strength, and a reflection of the beliefs held about Bitcoin’s important role in the future of the global financial system.
The global financial system began to show cracks this month after the collapse of Silicon Valley Bank, which is the second-largest bank collapse in the history of the US. The Federal Reserve has since taken multiple measures to backstop commercial banks with liquidity, which have been bullish for the prices of both Bitcoin and gold. Currently, Bitcoin is trading at $28,121.50, a 1.07% surge over the past day, about a 12.24% surge over the past 5 days, and a remarkable 15% increase over the past month.