Bitcoin (Bitcoin) The network has seen a rise in total transaction volume, reaching levels not seen since the spike in 2024.
Over the past three days, the number of Bitcoin transactions, which measures the total number of transactions carried out on the network daily, has risen to nearly 831,000, according to Data from Cryptoquant Analyzed by Finbold on May 12.
A significant rise in the number of daily Bitcoin transactions could indicate increased demand for transfers and trading, especially from institutional investors. With the major coin trending upward over the past few weeks, increased network activity could boost its bullish sentiment if it continues in the near future.
Furthermore, the rise in the number of Bitcoin transactions in the past has coincided with bullish sentiment. For example, after Bitcoin exchange-traded funds (ETFs) were approved in early 2024, the number of network transactions rose along with the value of the asset, reaching a level that nearly matches the most recent record.
Could Bitcoin price rebound further as network activity increases?
Although the Bitcoin network has seen a spike in activity, major events in the US amid a leverage-driven rally remain a major concern. For example, US inflation came in hotter than expected, with the Consumer Price Index (CPI) rising to 3.8%, its highest level since May 2023, a factor considered bearish for crypto assets.
Additionally, the upcoming additional vote for the Clarity Act, a proposed US federal regulation aimed at legalizing crypto assets, could lead to a sell-off scenario for Bitcoin. To complicate matters further, the price of Bitcoin has encountered a major sell wall at around $82,200 over the past few days and was trading at around $80,170 at press time.
As such, if network activity continues to grow, it could boost growth in the near term, Feinbold previously said male. On the other hand, if the Bitcoin network collapses over the coming days, a further correction, fueled by macroeconomic events, may be inevitable.
