CryptoQuant, a leading cryptocurrency analysis firm, has issued a positive assessment of Bitcoin’s network fundamentals, suggesting that the digital asset is poised for further growth.
The firm noted that Bitcoin’s hashrate, a measure of computing power used to mine new blocks, has reached an all-time high. This surge in hashrate indicates increased mining competition and has driven up mining difficulty to unprecedented levels. CryptoQuant believes that the rising hashrate and mining difficulty contribute to Bitcoin’s intrinsic value, making it a more attractive investment for sophisticated investors.
Additionally, the number of active Bitcoin addresses has been steadily increasing since mid-September, signaling growing engagement and activity on the network. The rise in on-chain transactions has also led to a surge in network fees, a typical pattern observed during previous bullish periods for Bitcoin.
CryptoQuant concluded that Bitcoin’s network fundamentals are exhibiting positive trends similar to those seen in past bull markets. While a potential correction or consolidation phase cannot be ruled out, the firm remains optimistic about Bitcoin’s long-term prospects.
