Bitcoin

All eyes on Bitcoin as Q3 draws to a close 

Bitcoin’s network activity, especially the contribution of Inscriptions, increased substantially over the last month. As metrics show positive signs, will BTC rally?

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1 year ago

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  • Bitcoin’s average daily transaction count surged to 522,000 in September.
  • The reserve risk indicator suggested that BTC’s price was at a market bottom. 

Investors continued to keep a close watch on Bitcoin’s [BTC] price, which remained above the $26,000 mark at press time. Moreover, on 28 September, Messari posted an analysis that highlighted the king coin’s performance on multiple fronts over the last few weeks.

Read Bitcoin’s [BTC] Price Prediction 2023-24

SEC and Bitcoin

Messari’s report began with highlights of the ETF and SEC episodes. For the uninitiated, a federal judge ordered the SEC to review Grayscale’s request for a spot Bitcoin ETF on 29 August. This incident caused

BTC’s price to move up as prospects of a Bitcoin spot ETF heightened.

The price increase was, however, fleeting, as the price fell back to earlier levels in just two days.

While this happened, MicroStrategy, which is one of the largest BTC holders, increased its accumulation. According to an SEC filing submitted on 25 September, MicroStrategy stockpiled nearly 5,445 Bitcoin for $147 million, increasing the company’s total BTC holding to 158,245 BTC.

Bitcoin’s network activity is commendable

Apart from the aforementioned updates, Messari’s report also highlighted Bitcoin’s network activity. For instance,

BTC Ordinals, which gained much popularity right after its inception, continued to show strong upward momentum.

In the last month, there have been 7.7 million Inscriptions on Bitcoin, which is a 20% increase from the previous month. In fact, Inscriptions also accounted for more than 20% of the total transaction fees for bitcoin in September, which looked encouraging.

Source: Messari

Messari’s analysis revealed that between 2021 and 2022, Bitcoin transaction counts remained relatively stagnant. However, this changed with the emergence of Inscriptions in early 2023.

In September, the average daily transaction count surged to 522,000, which was a 12% increase compared to the previous month.

Additionally, Bitcoin’s active addresses experienced a breakthrough in September, surpassing the 1 million threshold. As per the report, the daily average count of active addresses reached 1.04 million, which was a 9% increase compared to August.

Source: Messari

Should investors have high hopes for BTC?

Though several metrics registered upticks over the last month, the king of cryptos’ price action remained relatively less volatile. As per CoinMarketCap, BTC’s price only increased by 1% in the last seven days.

At the time of writing, it was trading at $26,963.98 with a market capitalization of over $525 billion.

Messari’s analysis also included a look at BTC’s reserve risk. The reserve risk indicator measures the confidence of long-term holders relative to the price of BTC.

At press time, the reserve risk lingered in proximity to critical historical levels, which have previously aligned with market bottoms.

Source: Glassnode

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Additionally, LunarCrush’s data revealed that bullish sentiment around BTC also increased by more than 6% in the last seven days.

Therefore, considering the above-mentioned metrics and BTC’s price nearly touching the $27,000 mark, investors might witness a bull rally in the days to follow.

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