CRYPTO MOVERS AND PRICES
Crypto is broadly higher this morning as bitcoin (BTC) makes yet another push to break above USD 11,000. In spite of the positive action, volumes remain consistent and about 50% of the 30-day average.
Crypto Story of the Day
With BTC settling into a range between USD 10,000 and 11,000, we wanted to revisit key metrics from the network for further context.
BTC’s hash rate, a reflection of the total computing power used to mine the network, achieved a new record high on September 24 according to Blockchain.com. Similarly, network difficulty, which Blockchain.com defines as, “A relative measure of how difficult it is to mine a new block for the blockchain,” rises as more actors attempt to mine BTC in order to manage stock-to-flow, achieved a record high last week.
Stepping away from on-chain metrics, BTC HODL waves — a reflection of a coin’s age, i.e. when it was last used in a transaction — remain relatively unchanged despite the asset’s drop after challenging USD 12,000 at the beginning of September. September’s market action did see a slight uptick of BTC deposited on Bitfinex, however, not breaking the metric’s mostly sideways movement since May.
September also saw a slight jump in the number of addresses with a balance greater than 100 BTC. However, despite that jump that metric remains relatively in line with trends established in September 2018 where large holders seemed to have sold off ahead of the bear market of winter 2018-2019.
Those supporting a bullish BTC thesis would probably point to the flat metrics as evidence of an unchanged outlook for the asset despite a failure to break above USD 12,000. A sustainably increasing hash rate and difficulty setting new highs shows growth and optimism in what is BTC’s most capital intensive sub-sector, mining. Ultimately, these metrics demonstrate that in spite of interest and price gains shifting towards DeFi and elsewhere (BTC dominance declining), metrics that would be considered BTC fundamentals continue to show incremental growth.