- High activity was observed on the Bitcoin network.
- Retail investors remained hopeful as traders went long.
According to newly available data, the activity is on Bitcoin [BTC] network has increased. The total number of transactions executed on the network has reached a 22-month high of 483,000 transactions.
The number of Bitcoin transactions has just hit a 22-month high
Transaction count is simply the number of transactions processed on the Bitcoin network in a given period of time. It reached a high of 483,000 trades on a 30D MA.https://t.co/TWortoQO9b pic.twitter.com/Ow1kEf05nA
— Maartunn (@JA_Maartun) April 29, 2023
Read the Bitcoin price forecast for 2023-2024
Are ordinal numbers the reason?
The high activity on the Bitcoin network can be attributed to the growing interest in Bitcoin Ordinals and Inscriptions. Bitcoin Ordinals and Inscriptions have contributed to a large percentage of the total number of transactions on the network.
According to data from Dune Analytics, total costs for Ordinals have increased significantly in recent months.
Source: Dune Analytics
BTC illiquid supply rises
The illiquid supply of the King Mint also increased. The recent surge in Bitcoin’s illiquid supply has resulted in a new all-time high, with 78% of the circulating supply now classified as illiquid.
Bitcoin’s illiquid supply refers to the number of coins held by long-term holders who have no plans to sell or trade them anytime soon.
It is the portion of the circulating inventory that is considered locked up in wallets or cold storage. This makes it unavailable for trading on exchanges or other platforms.
The higher the illiquid supply, the lower the amount of Bitcoin available for purchase or sale, which can affect the price and liquidity in the market.
In particular, illiquid supply witnessed the tenth largest one-day increase this year. This was because the industry’s instability led to a shift towards self-custody among investors seeking greater control over their assets.
Source: glasnode
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Private investors remain optimistic
Moreover, retail investors also showed their interest in BTC during this period. The increasing number of BTC addresses with more than 0.1 coins was proof of this.
Source: glasnode
Moreover, traders shared this optimism with retail investors. In recent days, the number of long positions taken in favor of BTC has risen from 48% to 51.4%. Only time will tell whether the optimism of retail investors and traders is justified.
Source: mint glass
