Jamie Coutts, reported on Tuesday that Bitcoin is demonstrating historic strength in two key metrics, despite its relatively low prices. Coutts noted that the number of “HODLers” – Bitcoin holders who rarely sell – and transactions on the Bitcoin blockchain have both reached all-time highs.
However, Coutts also pointed out that the median value of each transaction has decreased by 98.4% over the last three years, marking its lowest point since 2013. Despite this decline in transaction value, Coutts believes that overall blockchain activity is increasing, although Bitcoin’s economic value is currently facing challenges.
Inscriptions, a feature that allows Bitcoin holders to add extra data to individual satoshis, have been a significant part of transaction activity on the Bitcoin network over the past few months. According to Dune Analytics, inscriptions have generated more than $56 million in fees since Bitcoin’s inception, suggesting that this trend is more than just a passing fad.
Despite these promising on-chain signals, Coutts warned that Bitcoin is currently under pressure due to a lack of global liquidity. Historically, Bitcoin’s market cycles have expanded and contracted in line with global liquidity trends. Until this trend reverses, Coutts cautioned that Bitcoin’s value is unlikely to rise and could even decline.
On Monday, Coutts had highlighted two on-chain metrics showing Bitcoin’s strength while it remained at relatively low prices. He stated that the number of HODLers and transactions on the Bitcoin blockchain were at all-time highs. However, he also noted that the median value of each transaction had fallen 98.4% in the last three years, its lowest since 2013.
