Bitcoin Transactions Surge to 21 Month High – What This Means For BTC Price
The number of transactions recorded on the Bitcoin blockchain jumped to nearly 300,000 on Saturday the 14 of January, its highest level since April 2021, according to data from crypto analytics firm Glassnode. Just a few weeks ago, daily transactions had been as low as 240,000.
The uptick in activity on the Bitcoin blockchain coincides with a recent surge in the price of the world’s largest cryptocurrency by market capitalization. BTC/USD was last changing hands in the $21,100s, according to Trading View citing Coinbase exchange data. That means the cryptocurrency is currently trading higher by about 28% this month.
Traders have attributed Bitcoin and the broader cryptocurrency market’s gains to macro tailwinds, including an easing of US inflation concerns after the latest CPI and jobs reports and fresh evidence of a slowing US economy, the combined effect of is encouraging traders to dial down on Fed tightening bets for this year and next.
Bitcoin and cryptocurrencies tend to perform when financial conditions ease and, as a result of macro tailwinds, alternative.me’s Bitcoin fear & greed index has moved sustainably out of fear (i.e. above 50) for the first time since last April.
Bitcoin’s latest surge resulted in a wave of short position liquidations, which peaked at $141 million in one day last Friday according to data from coinglass.com, the highest in at least three months.
The latest rally also resulted in a modest uptick in Bitcoin funding rates across major cryptocurrency exchanges, according to coinglass.com. According to coinglass.com, “positive funding rates suggests speculators are bullish and long traders pay funding to short traders”. But the small jump in BTC funding rates was small compared to the massive drop
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