Bitcoin Demonstrates Historic Strength Despite Low Prices, According to Bloomberg Analyst

Crypto market analyst Jamie Coutts from Bloomberg Intelligence reported on Tuesday that Bitcoin is showing remarkable strength in two significant metrics, despite its relatively low price levels. Coutts highlighted that the number of “HODLers,” or Bitcoin holders who seldom sell their assets, along with the volume of transactions on the Bitcoin blockchain, has reached all-time highs.

However, he also noted that the median value of individual transactions has plummeted by 98.4% over the past three years, hitting its lowest point since 2013. Despite this decline in transaction value, Coutts believes that overall blockchain activity is on the rise, although Bitcoin’s economic value is currently facing obstacles.

Inscriptions, which allow Bitcoin holders to embed additional data into individual satoshis, have played a substantial role in the transaction activity on the Bitcoin network in recent months. According to analytics data, these inscriptions have generated over $56 million in fees since Bitcoin’s inception, indicating that this trend may be more enduring than a temporary spike.

Despite these encouraging on-chain indicators, Coutts cautioned that Bitcoin is currently experiencing pressure due to a lack of global liquidity. Historically, Bitcoin’s market cycles have fluctuated with global liquidity trends, and until this situation changes, there are concerns that Bitcoin’s value might not only stagnate but could potentially decline.

Earlier on Monday, Coutts emphasized two on-chain metrics that underscore Bitcoin’s resilience, pointing out the surge in both the number of HODLers and transactions on the blockchain. Yet, he reiterated the significant drop in the median transaction value over the last three years.

This article was generated with the support of AI and reviewed by an editor.