Story by: Abhimanyu Krishnan
The thought of a Bitcoin bull run arriving is always tantalizing, and investors have been waiting for quite a while now for it to happen.
The market has been in its bear phase for almost 6 months and despite the progress of various projects and developments in the market — Ethereum’s Constantinople hard fork, calls for regulation in Germany, Russia and India, increased exposure through institutional investment and broadcasted information, among others — the price of BTC remains hovering just below the US$4,000 range.
Still, there are some deeper indications that point to a possible bull run.
For one thing, it has been found that the number of BTC transactions currently taking place are at similar levels as December 2017, the last mammoth bull run that saw Bitcoin’s value rise to the phenomenal value of nearly US$20,000.
Reportedly, an average of more than 350,000 BTC transactions are being processed daily.
A Sign of An Oncoming BTC Bull Run?
Of course, the question here is whether there is a meaningful association between the number of transactions and the value of the digital asset.
The interesting fact is that, in the past, an increasing number of transactions has been associated with a surge in price. Since the start of 2019, number of transactions have increased by 34% . Prices haven’t risen with the same intensity as transaction numbers.
Perhaps some of this is down to the fact that the Lightning Network is being tested quite heavily. It is hard to tell if the number of transactions is due to an increase in adoption or a result of traders shorting Bitcoin in the market.
However, increased activity is almost always an indicator that something is on the brink — although whether or not it’s a bull run is anyone’s guess.
Investors should look to the many interesting developments ahead that might point to a stabilization of the market — an inflow of institutional investment, for example. The days of Bitcoin experiencing a great surge in price could be over.
Original story: https://www.investinblockchain.com/bitcoin-btc-usage-reaching-all-time-high/by