Bitcoin's Climb to New Highs Dependent on Network Growth

IconCryptoNewsTerminal Staff14 Jun, 2024

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Bitcoin's Climb to New Highs Dependent on Network Growth

Jurrien Timmer, the Global Macro Director of Fidelity Investments, recently pointed out the correlation between Bitcoin's price and its network growth. Timmer stated that the recent divergence between price and adoption has likely hindered Bitcoin's ability to reach new highs. In response to Timmer's statements, Ki Young Ju, CEO of CryptoQuant, highlighted the shift in adoption metrics over the past few years. Ju emphasized the declining velocity of Bitcoin and the concentration of funds in fewer wallets. He suggested that isolating Bitcoin payments or examining application usage may provide a better gauge of adoption in the current market landscape. Timmer's and Ju's comments underscore the importance of network activity and adoption for Bitcoin's price performance. As the cryptocurrency industry evolves and institutions increasingly embrace digital assets, understanding the factors that drive Bitcoin's growth will be crucial for investors and market participants.

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