Bitcoin and Ethereum Analysis from Glassnode

Bitcoin and Ethereum statement from Switzerland-based Glassnode, which provides analysis on the chart...

While cryptocurrency leader Bitcoin (BTC) and the broader cryptocurrency market were strong last week, this week the crypto market is undergoing a partial pullback. Investors are wondering whether it can hold above $1 trillion. Glassnode recorded some on-chain metrics to understand whether this is just a bear market rally or a bullish trend reversal.

Bitcoin (BTC) Chain Metrics

As Bitcoin active addresses continue to remain in the downtrend channel, the current price increase is being recorded as bearish impulses. While there were a few spikes in activity during the capitulation events, broader network activity suggests that there is little new demand flow at the moment. As well, on-chain transaction fees are still in bear market territory, currently totaling only 13.4 BTC in fees paid each day. In contrast to the current bear market, bull markets usually maintain high fee rates, showing the first signs of demand recovery. Glassnode states;  "Overall, this suggests that the Bitcoin network remains dominated by HODLers, and through the lens of on-chain activity, there has yet to be a significant return of new demand."

Ethereum (ETH) Chain Metrics

Ethereum (ETH), the second leader, has followed the same trends as Bitcoin over the past year. There has been a gradual deterioration in aggregate network utilization and congestion, while network congestion has remained at its lowest level despite the recent ETH price rally. Over the past year, Ethereum transaction demand has gradually declined. Glassnode said of ETH;  "Ethereum gas prices have recently dropped to just 17.5 Gwei on a 7-day median basis. This is the lowest network congestion and gas price since May 2020, before DeFi Summer and before the start of the bull market." The investment information, comments and recommendations in the article are not investment advice. Investment advisory services are provided individually, taking into account the risk and return preferences of individuals. The content contained herein is in no way directive and the recommendations are of a general nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in accordance with your expectations.