Jamie Coutts, a cryptocurrency market analyst at Bloomberg Intelligence, suggests that Bitcoin (BTC) has demonstrated its historical strength in two on-chain metrics, while BTC has remained relatively low in price.
Jamie Coutts, announcing on social media platform X, provides an update on Bitcoin’s on-chain activities. He points out that the number of BTC holders or holders who rarely sell is at its all-time high, and transactions on the Bitcoin blockchain are also at their highest levels.
Additionally, Coutts claims that the average value of each transaction has dropped by 98.4% over the past three years, reaching its lowest level since 2013. Ultimately, Coutts states that blockchain activity is on the rise but implies that Bitcoin is under pressure due to a global liquidity shortage, historically coinciding with market cycles of expansion and contraction. The senior analyst stated:
Bitcoin on-chain update: holders at all-time high levels. Transactions at all-time highs. Active entities at 85% slice of last five years. Dollar value down 30% in 12 months. Median value at $7.72 – lowest since 2013!
Furthermore, Coutts highlights how Bitcoin scripts, which allow individual satoshis to embed additional data, have dominated transaction activity on the Bitcoin network in recent months, suggesting that this is more than just a temporary frenzy.
According to Dune Analytics, registered bonds have generated over $56 million in fees for Bitcoin since its inception. While the leading cryptocurrency signals a rise on-chain, Jamie Coutts notes that BTC is currently under pressure due to a global liquidity shortage, historically coinciding with market cycles of expansion and contraction. The analyst stated:
Meanwhile, global liquidity contraction has slowed money supply and central bank balance sheets, but it remains highly negative. It seems unlikely that Bitcoin will rise until this situation reverses. Probably lower.