Observing the different Bitcoin network statistics often paints an interesting picture. Even though it appears fewer people are inclined to sell at the current price, the input volume looks very different. Based on this chart, the bull run may not be over just yet.
Bitcoin’s Input Volume Rises Quickly
Regardless of what the Bitcoin price may be, network transactions will need to go through regardless. A higher value tends to make people more eager to spend BTC. That is a healthy sign, as BTC is still considered to be a payment method. Unless people use it as such, there is no point other than speculative value. There are many other currencies capable of fitting that bill.
Looking at the recent change in input volume, Bitcoin remains an interesting creature. The overall volume has gone up since late July of 2020. It has not stopped rising either, indicating there are plenty of transactions taking place. A minor dip or two is normal, but the overall uptrend is not broken in the slightest.
It is not the first time Bitcoin’s input volume goes off the chart, so to speak. The first time was during the 2017 bull run, which culminated in two years of “crypto winter”. Interestingly enough, another spike took place in late 2019. This is curious, as nothing out of the ordinary happened to the price at that point.
With the third input volume spike in history now shaping up, things are a bit more intriguing. It clearly coincides with Bitcoin’s push for a new all-time high
value. Whether that will effectively be the outcome, is a different matter altogether. No one can predict these volatile markets. As of right now, there is just under $46 billion in BTC spent as inputs on the network per day.
Inputs Don’t Mean Selling
Contrary to what some may assume, a rise in input volume doesn’t result in bearish market pressure. Although Bitcoin is struggling to retain the $19,000 level, there is no reason for panic. Some minor retracement is to be expected after rising by several thousands of Dollars in quick succession.
Judging by the chart by CryptoCompare, there are no notable changes in Bitcoin trading volume today. A few spikes are relatively normal, yet those don’t amount to that many BTC either. At the peak, just under 1,400 BTC was traded against the USD in a 15-minute span. Nothing out of the ordinary, as this can be either buying or selling pressure.
For now, it remains likely that Bitcoin will hit a new all-time high. Whether that is this year, or in the future, is up for debate. Given the current market momentum, no one can be dissatisfied. Noting a new all-time high too quickly can prove detrimental to the overall market momentum.