A look at the data situation: Quo vadis, Bitcoin?

A look at the data situation: Quo vadis, Bitcoin?

Among other benefits, Bitcoin is a giant step towards more transparent financial markets. In addition to transaction activity, indicators such as the hash rate can also be read on the block chain. Time to take a look under the bonnet.

Yawn! Bitcoin’s share price behaviour in this Corona-December is anything but volatile. Rather the Bitcoin Sunrise crypto currency no. 1 has been describing a sideways trend since the beginning of the month. Quo vadis, Bitcoin? A look at the data situation.

Hash Rate

One thing first: As things stand, you don’t have to worry about the hash rate. The accumulated computing power in the network lost significant momentum at the end of October. In the meantime, however, the miners are back on board and are supplying Bitcoin with sufficient power. According to market observers, the slump in October this year was due to the end of the rainy season in Sichuan. Miners operate their Bitcoin mines in the southwest Chinese province with electricity generated from hydropower. If there is no rain, the water level of the dams drops and electricity becomes more expensive. This usually forces the miners to change locations, which is also reflected in the hash rate.

Currently, the hash rate is heading for a new all-time high. At the time of going to press, it is 137 exahashes per second (EH/s) and is thus only around 6 per cent behind the all-time high of 146 EH/s. An all around bullish signal.

Active Addresses Sentiment: Slow recovery?

Sideways gears like this may not be very productive for observers. However, they are essential for the long-term price development. Bitcoin was overheated after its November rally, which even manifested itself in a new all-time high. The setback to just under USD 18,000 (USD) on 9 December can be confidently seen as a healthy price correction.

If you take a look at the Active Addresses Sentiment, for example, you will notice that BTC has been trading in the „red zone“ for quite some time, more precisely since 19 October. Let us remember: If the Bitcoin price rises too quickly in too short a time, it cannot be supported by the growth of active addresses, a price correction is likely.

These days „Orange Coin“ has been trading in the healthy range between the red and green dotted line again. So the network conditions for a new upward trend are being straightened.

Transaction history

The size of Bitcoin has already grown, as can be seen from the transactions. Every day 250,000 to 300,000 BTC change address. At a market value of around 18,500 US dollars, this represents between 4.6 and 5.5 billion US dollars per day processed by the network.

This makes BTC the largest decentralised money network in the world. Even if BTC did not attract attention for a while, the crypto currency has been functioning perfectly since its genesis – and is transporting ever larger sums of money.

Profitable Bitcoin days

And another hint for bearishly tuned Bitcoiner: crabwalks and price setbacks do not last long in bull markets. If you take a look at the profitable Bitcoin days, you will see that it was a good idea to invest in the crypto currency on 99.6 percent of the days. Only on 16 days was the price higher than today.