Journey from bear to bull: Can Bitcoin maintain the momentum?
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Journey from bear to bull: Can Bitcoin maintain the momentum?

written by John Murphy | March 23, 2023

Bitcoin has been on the bull run for more than a year now. The latest statistics of Bitcoin show that its on-chain performance has led it out of the deep bear market territory. This means the Bitcoin value had been declining for a period of time. However, the recent consistent increase in price has pushed it out of that decline and into a more positive market.

Key Takeaways

  • Increase in the market value of Bitcoin by 35.8%.
  • The transaction count of Bitcoin increased thus increasing the transaction fees.
  • The number of New users adopting the Network reached 122,000.

The price of Bitcoin has increased to $27,524 now. This indicates that the market value of BTC has increased by around 35.8% As the data from the glassnode suggests. According to that data, the price rally of Bitcoin since 14th March has pushed it from a deep bear market structure to a bull market. Along with a higher level of optimism and confidence in investors for the coin.

Increase in transaction count

Glassnode found the increased demand for Bitcoin. Especially during the last week, there was an increase in network activity. Glassnode assessed that the monthly average transactions count of Bitcoin has increased to its highest levels since April 2021. The average number of transactions taking place on the network is 309,500 per day.

This is a positive indication as it tells that there has been more network activity. Additionally, Glassnode also noted that less than 12.2% of the days have seen more transaction activity, indicating that the current level of transaction activity is relatively high compared to previous levels.

More adoption of Bitcoin

Increased user adoption of the Bitcoin network is yet another factor that contributed to the gradual exit of Bitcoin from the bear market. Which indicated an increased demand as well. this surge in user adoption caused network congestion that led to an increased transaction fee.

According to Glassnode the number of unique new users for Bitcoin (BTC) reached 122,000, and this figure was higher than that of only 10.2% of days with higher adoption rates of the new users.

Miners benefitted from the increased network adoption and demand. As the miner revenue also increased reaching $22.6 million per day. This amount is higher than the yearly average and also the highest since June 2022, as per the report.

Glassnode also shed light on the Market Value to Realized Value (MVRV) metric for Bitcoin (BTC). They reported that the MVRV Momentum Oscillator had turned positive in the last week. This indicated that many Bitcoin holders had purchased the cryptocurrency at prices lower than its current value, and now their investment turned profitable. In the past, these positive flips represented increased network adoption and on-chain activity.

Source: Glassnode