The recorded number of daily number of Bitcoin transactions indicate an elevated level of activity on the Bitcoin network.
The current number of daily Bitcoin transactions is similar to observations during the 2017/2018 bull run. During the2017/2018 bull run, the average number of daily Bitcoin transactions was 490,000. Even though this level has not been reached yet, daily Bitcoin transactions in April have broken the 400,000 level.
There is a correlation between Bitcoin price increase and the number of transactions within the network. Even though there is no absolute explanation why this trend must exist, simple logic would suggest that a growing price chart for the cryptocurrency usually attracts more interests, hence more people join the network by buying Bitcoin.
The number of transactions may not necessarily correlate with the price of previous trends. For instance, although the number of daily transactions is close to the 2017/2018 highs, the price of Bitcoin is still far away from its high of over $19,000 during the same period.
A simple hypothesis for this pattern would suggest that Bitcoin has an undertone of a more organic growth that involves a larger community. High number of transactions with reduced rate of price implies that the size of single trades have reduced. This is probably as a result of less speculative trades that are usually responsible for the extreme market volatility experienced during those periods.
No matter the impact on the price of Bitcoin, increased number of transactions remains a good sign for the cryptocurrency. It shows that there is an increased level of interest in Bitcoin, and this is a fundamental benefit for the technology as a whole.
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