In the middle of this week, Bitcoin (BTC) for the first time since the end of May 2021 jumped in a price above $ 40,700. Then the coin retreated slightly on the night of Thursday, July 29.
There is a strong correlation between the price of cryptocurrency and network activity. As soon as bitcoin started to grow, the number of active addresses on the blockchain skyrocketed by more than 40%.
Analysts from Arcane Research drew attention to the sharp increase in the daily trading volume of bitcoin. This figure rose to its highest level since June 22 after BTC first tried to gain a foothold above $ 40,000.
The average cryptocurrency trading volume is now about $ 9.2 billion per day. In June and July, there was a weakening of the activity of investors, many of whom went on vacation. During this time, Bitcoin was predominantly traded in the $ 30,000 to $ 40,000 range.
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The sharp rise in cryptocurrency trading could signal that traders are gradually returning to the market, according to a study by Arcane Research.
However, compared to the peaks observed in spring, network activity is still weak. Although the researchers do not exclude that in August the trend will change at a faster pace.
Arcane Research expects bitcoin expansion to resume in the second half of August or September.