Bitcoin network transactions and fees surged amid investor de-risking.
The “cointelegraph price analysis” is an article that discusses the recent surge in bitcoin network transactions and fees. The article also talks about how investors are de-risking their portfolios due to the recent market volatility.
The volume of transactions on the Bitcoin network has increased dramatically in the last week, which blockchain monitoring company Glassnode attributes to investors de-risking.
Last week, the Bitcoin (BTC) mempool was flooded with 42,800 transactions. Because of the hefty costs paid each transaction, Glassnode’s lead analyst believes they were “urgent” purchases. According to bitinfocharts, an on-chain data tracker, the average charge jumped to $2.72 last week, approximately 15% more than the regular average. On May 9, the results were published in the Glassnode “Week On-chain” report.
The #Bitcoin market has had an extraordinarily tumultuous week, with prices plunging to $33.8k and an additional 10% of the network losing value.
We look at how the market reacts to supply contractions in the mempool, exchanges, derivatives, and stablecoins. https://t.co/WDuzlObVxK
May 9, 2022 — glassnode (@glassnode)
On a blockchain network, transactions are forwarded to the mempool before being confirmed in a block. The larger the charge paid on a transaction, the more likely it will be chosen above others.
Investors paid higher-than-average fees, according to Glassnode, to prioritize their bids in order to de-risk their portfolios or add collateral to their margin positions, since the price of bitcoin has dropped 19 percent in the last seven days. Fees for on-chain transactions corresponded with currency deposit rates by little over 15%, and they were only greater in May 2021, during another time of significant sell-offs.
For most of 2022, BTC inflows to exchanges outweighed outflows, but that trend reversed this week, with inflows exceeding outflows by more than $50 million. According to Glassnode, the entire amount of exchange-related volume was only reached in October and November, matching the bull market’s high in late December and early January of 2017.
Since the middle of April, BTC accumulation has been on a downward trend, according to Glassnode. The greatest accumulators of any cohort of wallets up to whales during the last week were “Shrimps,” who own less than one whole Bitcoin, although even their accumulative strength was poor compared to prior months this year.
Bitcoin retests a critical $30K support level as data reveals BTC whale accumulating
Those in the top cohort with at least 10,000 coins were the biggest distributors or vendors. According to Glassnode, distribution has been larger than accumulation for the most of 2022, however the biggest accumulators have been those with less than one BTC to those with ten.
As Cointelegraph wrote on May 10, Bitcoin markets look to be continuing down their “rocky path” to capitulation, with total fees spent reaching a local high as investors attempt to exit increasingly risky holdings.
The “btc news” is reporting that the Bitcoin network transactions and fees have surged amid investor de-risking. The surge in Bitcoin transaction volume has been attributed to investors looking for a safe haven from the recent market volatility.
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