Bitcoin’s valuation was able to breach more than $9,000 in press time, but it is essential to note the improvement in some of the metrics in April.
According to Arcane’s weekly update, It was indicated that Bitcoin’s velocity in the network has witnessed a substantial rise in the past few weeks. The rate at which BTC is being transacted has picked up pace from March, which suggests that the user engagement in the space is much more than usual levels.
Bitcoin velocity is defined as the speed at which Bitcoin is moved through the Bitcoin on-chain network. According to the above chart, Bitcoin currently had a velocity rate of 6 which meant that BTC is being transacted 6 times more than usual at the time of writing. For example, if 1 BTC is being processed per minute at the usual rate, 6 BTCs are moving in the network per minute at the moment.
It has also been reported that past periods of higher speed for Bitcoin have historically been a period of fruition for investors and traders. The higher velocity of the BTC has been directly translated into a higher Bitcoin valuation, which seems to be the current scenario.
The above statement can be verified by the fact that the number of active BTC addresses and transaction counts has also increased in the charts recently.
The increase in the number of transactions defines the number of unique addresses entering the network mempool during higher trading activities.
It can be speculated that increasing bitcoin velocity, higher transaction count, and higher network activity could lead to another price rally for bitcoin over the next few weeks.
Exchanges continue to lose Bitcoins
Although Bitcoin is going through a lucrative period as an asset, the same can not be said for crypto exchanges. According to data from Glassnode, the number of market participants had begun to take their BTC out of the exchanges after the crash on 12 March, and the situation had not improved much during the press period.
Over the past month, the number of BTCs lost by exchange addresses is more than 10% and continues to fluctuate in a downward spiral.
One of the main reasons for this trend could be an increase in Bitcoin holders. As Bitcoin prices have continued to rebound sharply since March 12, more and more hodlers are moving their coins away from exchanges and are therefore unlikely to sell their funds in the near future.
Another major reason indicated in the report is a lack of confidence in exchanges, as the mishap of BitMEX in the mid-March collapse caused the investors a mishap.