The world’s leading cryptocurrency notes some rather impressive statistics once again. A four-year high in transaction volume is rather interesting. Contrary to popular belief, the miners are not responsible for this process, for a change.
A Transaction Volume High For Bitcoin
Many people often wonder whether people transact value across the Bitcoin network. Statistics confirm there is plenty of activity across this ecosystem, even if it isn’t always as outspoken. Using BTC comes in different forms, and the overall transaction volume will fluctuate wildly. Things had gotten a bit stale in recent months, although things are picking up once again.
Noting a four-year high at such a crucial time is essential for the leading cryptocurrency. Although it is still unclear where this spike comes from all of a sudden, it is a significant development in the crypto space. Recording a four-year high out of the blue is often a prelude to a significant price change, either for better or worse.
The last time such a high transaction volume was recorded, Bitcoin lost over 50% of its value. Such a dip has already taken place in 2021, although that doesn’t mean it can’t happen again. Cryptocurrencies are notoriously volatile, and the current market outlook isn’t too promising. Bitcoin, and other crypto assets, have noted a rather bearish momentum recently.
Following this increase in transaction volume, interesting things can happen. The main objective is to keep an eye on the price, as that is likely to undergo some changes shortly. It seems unlikely that El Salvador’s adoption of Bitcoin has anything to do with this sudden spike. However, the country shows that BTC can be a viable currency in the real world, even on a smaller scale.
Miner Outflow Isn’t To Blame
When there is an increase in Bitcoin transaction volume, one concern is how miners may be dumping BTC on exchanges. One way to check that is through the Miner Outflow Multiple. It indicates whether the amounts of BTC from miner wallets are higher compared to the historical average. So it is always good to reference historical data in that regard.
Surprisingly, the Miner Outflow Multiple is lower than one would expect. It is at a monthly low, confirming miners aren’t contributing to the transaction volume. That makes it all the more intriguing as to where this network activity comes from. Moreover, no one knows if it will prove sustainable in the long run. More volume would be beneficial, although it can be challenging to achieve.