Bitcoin (BTC) network activity has surged to its highest level since November 2024, with daily transactions reaching roughly 615,000, though analysts warn the spike may reflect operational wallet management rather than genuine buying demand.
Network Activity Rebounds
CryptoQuant reported on Monday that its Network Activity Index — which tracks addresses, transactions, UTXOs, and blockspace demand — "just snapped higher after months of decline." The firm noted that fees remain relatively low despite the jump.
That detail matters. Low-fee conditions make it cheaper for exchanges, custodians, and large holders to consolidate UTXOs, rebalance wallets, and move funds on-chain.
CryptoQuant suggested the uptick may be partly operational rather than a sign of fresh organic demand.
Glassnode offered a cautious read, noting the recent breakout follows a period of compression and "signals a renewed attempt to challenge overhead resistance."
But declining exchange volume points to light participation, a sign the recovery is "not yet fully confirmed."
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Sentiment and Crowd Expectations
Santiment flagged social sentiment as a potential contrarian signal. The crowd posted the third-highest "greed score" in roughly three months, reflecting broad belief that the rally will continue.
"With optimism high, remember that markets typically move opposite to the crowd's expectations," the firm warned.
The crypto Fear & Greed Index, however, sat at 11 — deep in "extreme fear" — where it has remained for about two weeks.
BTC touched $70,000 in late Monday trading before sliding to $68,500 during the Tuesday morning Asian session. The token has traded in a two-month range-bound channel, and geopolitical headlines have had little visible impact.
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