- Bitcoin outflows began to increase, giving hope to HODLers.
- Miner revenue increased, reducing selling pressure on BTC.
Bitcoins [BTC] The rally had a major impact on the overall state of the crypto market. However, many are wondering whether this rally will continue into the future.
Condition of the king's coin
However, some factors can still help BTC’s bullish dream come true. What is noteworthy is that BTC outflows are increasing sharply.
This increase leads to an increase in transaction fees, which directly quantifies demand on the network. Increased fees during peak periods show that users urgently need to validate transactions – important data for both miners and investors.
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#Bitcoin's on-chain behavior reflects a cyclical pattern, often stimulated by exogenous events.
The heatmap visualizes various metrics of behavior over time, illustrating how coins are mobilized in response to environmental stimuli or in anticipation of future stimuli
🧵 pic.twitter.com/ldzQMYw6k6
— NeuroInvest Research (@Neuro__Invest) December 1, 2023
The pronounced increase in BTC outflows may have several significant impacts on the Bitcoin ecosystem.
First, the increased transaction fees resulting from this increase reflect increased demand on the network. This demand also indicates high user activity.
One of the reasons for the increase in addresses could be the increasing interest in BTC ordinals. According to Dune Analytics data, the number of ordinal inscriptions had also increased.
The rising interest in Ordinals will also allow NFT investors to enter the Bitcoin network. This increasing usage of BTC coupled with increased outflows could play a big role in supporting the current BTC price.
How are the miners?
For miners, the cycles of increased transaction fees become financially beneficial during periods of high traffic.
The combination of newly created coins and transaction fees serves as an incentive for miners to continue contributing computing power to the network.
Is your portfolio green? Check out the BTC profit calculator
In recent weeks, miners' earnings have increased. This could help ease the selling pressure on these miners. Because when miner revenue declines, miners are forced to sell their holdings, which ultimately causes the price of Bitcoin to fall.
Source: Blockchain
At press time, BTC was trading at $38,777.65 and was up 1.56% in the last 24 hours. BTC trading volume also grew. In the last few weeks, BTC trading volume increased from 8.39 billion to 19.27 billion.
Source: Santiment
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