- Bitcoin’s network momentum, a metric that tracks on-chain volume, has stalled in recent months.
- Some see this trend as a concerning sign for BTC’s long-term trend.
- This may not be a concern as there are certain trends suppressing the metric, analyst Willy Woo says.
BITCOIN MOMENTUM STALLS BUT IT’S NOT THE END OF THE WORLD
Despite resilience in Bitcoin’s price, exemplified by the recent price action and the macro rally from the March lows, network momentum has stalled. Created by on-chain analyst Philip Swift, network momentum is a metric that “looks into the value transmitted through the Bitcoin blockchain denominated in BTC value plotted against its price.”
Some see this as a concerning sign.
“BTC Momentum suffers from changes of on-chain behavior. We’re in an era where layer-2 is dominant, also 2017 had huge BTC movements for ICOs including syndicate buys pooling BTC, increasing the volume, 2020 it’s done on ETH and exchanges. Time to deprecate.”
BTC Momentum suffers from changes of on-chain behavior. We're in an era where layer-2 is dominant, also 2017 had huge BTC movements for ICOs including syndicate buys pooling BTC, increasing the volume, 2020 it's done on ETH and exchanges. Time to deprecate. https://t.co/YvD2Y2Bw38 pic.twitter.com/B6Jx3tVxmT
— Willy Woo (@woonomic) October 7, 2020
OTHER TRENDS STILL BULLISH
Cole Garner recently shared that data from Glassnode shows that the number of new Bitcoin addresses created per day surged last week to more than 20,000. For some context, this metric normally sits between 5,000 and 10,000.
1/ New #bitcoin addresses were absolutely off the charts last week.
The backstory is bullish and intriguing — a unique view on a new bull market catalyst.
I’m about to break this down 👇#BTC pic.twitter.com/GPZ1e3mzAr
— Cole Garner (@ColeGarnerBTC) October 5, 2020
“Bottom line — this news is incredibly bullish, and appears to have fundamental confirmation. I definitely I expect more shakeouts and sideways price action moving forward. But I’m fundamentally bullish on $BTC. And I think hodlers will be grinning by Christmas.”
Around the same time as this segment aired, state media shared reports about cryptocurrencies being the best investment of 2020.