Bitcoin’s network activity is at its highest since 2017 as bulls awaken

Bitcoin’s network activity is at its highest since 2017 as bulls awaken

Bitcoin just set fresh 2020 highs today, close on the heels of it posting its highest monthly candle seen since mid-December of 2017.

The robust market structure formed in the time since BTC broke out of its macro consolidation phase isn’t unwarranted, as the recent push higher has been driven by intense fundamental strength.

One such factor that highlights this underlying strength is the crypto’s network activity – which is currently sitting at the highest level seen in over two and a half years.

The economic backdrop that the cryptocurrency is currently trading against may also be creating a tailwind that is lifting it higher, as the world is seeing record-level money printing and low interest rates.

This is causing hard assets like gold and Bitcoin to both see strong price action.

Bitcoin network activity surges to post-2017 highs

Bitcoin’s ongoing upswing led it to fresh yearly highs of $11,800 earlier this morning, putting some significant distance between its multi-month lows of $3,800.

The benchmark cryptocurrency’s overt strength at the present moment reminds many investors of that seen last summer, in which BTC ran from lows of just under $4,000 to highs of $14,800 in a matter of weeks.

Unlike last year, however, this latest rally has come about in tandem with growing fundamental strength.

One metric that elucidates this strength is Bitcoin’s network activity, which is currently at the highest it has been since the period between December of 2017 and January of 2018.

Analytics platform Glassnode spoke about this metric in a recent tweet, noting that there are now 18.7 million unique BTC addresses.

“With 18.7 million unique active BTC addresses in July, Bitcoin network activity is on the rise and at levels not seen in over 2.5 years. In Bitcoin’s history July’s number has only been topped by two months: December 2017 and January 2018.”

Bitcoin Number of Monthly Active Addresses
Bitcoin Number of Monthly Active Addresses (Source: Glassnode)

BTC is being driven higher by a few key fundamental factors

Alistair Milne – the Chief Investment Officer at Altana Digital Currency Fund – explained in a recent tweet that there are several key factors that are helping to boost Bitcoin’s bull case.

These factors, which have led him to question what the BTC bear case is, include:

  • Bitcoin posting its second-highest monthly close ever yesterday
  • Record high rates of investors holding BTC for over a year
  • Massive global money printing
  • Record low interest rates
  • Gold reaching fresh all-time highs
  • Lack of mainstream media coverage for Bitcoin

The confluence of an ideal economic backdrop coupled with a strong market structure and robust underlying fundamentals are all playing into Bitcoin’s favor.

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