Bitfinex Alpha: Bitcoin’s On-Chain Activity Spikes, Multiple Bul
On May 9th, according to the latest report from Bitfinex Alpha, due to the popularity of Meme coins and the increase in BRC-20 token transactions, Bitcoin network transaction fees reached the highest level in two years. The BRC-20 token standard, similar to ethereum's ERC-20, has quickly gained traction since its launch in March.
Bitcoin network statistics are also near record highs, with the number of daily Bitcoin transactions exceeding 680,000, beating records set during the bull markets in 2017 and 2021.
The bullish case we see for Bitcoin is that market volatility is likely to be subdued in the short term. After the Federal Reserve raised interest rates last week, liquidity was very low at just $34 million, while funding rates remained largely neutral. Additionally, the 25% delta slopes for BTC options with 7-day to 180-day maturities are almost all close to zero, indicating that investors are not paying a premium for put or call options.
However, historical trends suggest that this calm market situation will not last long. Liquidation-induced volatility is expected to emerge soon, potentially extending Bitcoin's year-to-date upward trend.
The usually reliable MVRV (Market Value to Realized Value) Z-score metric also supports the bullish thesis. At 0.7, the indicator has not been affected much by the recent resistance at $30,000, suggesting investors are still more likely to buy and accumulate.
Bitcoin network statistics are also near record highs, with the number of daily Bitcoin transactions exceeding 680,000, beating records set during the bull markets in 2017 and 2021.
The bullish case we see for Bitcoin is that market volatility is likely to be subdued in the short term. After the Federal Reserve raised interest rates last week, liquidity was very low at just $34 million, while funding rates remained largely neutral. Additionally, the 25% delta slopes for BTC options with 7-day to 180-day maturities are almost all close to zero, indicating that investors are not paying a premium for put or call options.
However, historical trends suggest that this calm market situation will not last long. Liquidation-induced volatility is expected to emerge soon, potentially extending Bitcoin's year-to-date upward trend.
The usually reliable MVRV (Market Value to Realized Value) Z-score metric also supports the bullish thesis. At 0.7, the indicator has not been affected much by the recent resistance at $30,000, suggesting investors are still more likely to buy and accumulate.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.