According to analyst William Clemente, Bitcoin (BTC) activity on the chain is “dead,” but the signs on the chain are very positive at the moment.

In the latest issue of his weekly newsletter, Anthony Pompliano Clemente highlights several accounts that show no reason to ditch bitcoin this month.

50,000 new bitcoins every day
Since BTC price behavior is not impressive, there is no shortage of bearish predictions for Bitcoin, and even the most popular pricing models have been criticized.

Clemente argues that if the data in the series is worth paying attention to, the situation is far from down.

He concluded, “The growth in the number of new users is now reaching new points on an ongoing basis, and more than 50,000 new devices are connected to the network every day.”

14-day moving average chart of bitcoin net growth. Source: William Clemente / Glassnode
These new units may put pressure on foreign exchange reserves, which have resumed their downward trend – in the past week alone, nearly 18,000 BTC has left foreign wallets.

The newsletter continued, “Retailers have been actively buying for several weeks now, but we finally got the whale photos we’ve been waiting for.”

“This week, 17 new whales were born on the blockchain, while the total number of whales increased at the same time by 65,429 BTC.”
As Cointelegraph reported, whales were already in the news this week for other reasons: the massive short-term stock market rally at Bitfinex led to a price drop that deprived BTC/USD of a significant $33,000 support.

More broadly, however, Clemente sees the current activity as “an increase in positive whale activity.”

Remember the slow blocking time
Elsewhere, reason for optimism comes from a decline in the Grayscale Bitcoin Trust (GBTC) premium despite looming closing events.

The hash rate is also no longer challenging the last drop of 83 breaths per second (EH/s), leaving only the alarming number of transactions left.

Graph of average bitcoin hash rate over 7 days. Source: Blockchain
“In general, network activity has stopped, as evidenced by the number of bitcoin transactions,” Clemente admitted.

However, so here is a warning.

“If I had to build a bear chest and challenge my own opinion, this would be one of the cards I would use. The portion of this drop down by people using the Bitcoin network will probably be smaller due to the slow block times.” reasoned. …

Source: CoinTelegraph

LEAVE A REPLY