Bitcoin risks turning bearish. Analytics firm Glassnode has shown that GNI index, which measures the overall state of the Bitcoin network, dropped 18% or 13 points week-on-week, to a value of 60 points. Simultaneously, the price of BTC was falling below the psychological $9,000 level, to around $8,700.
The long-term health of the BTC network remains “relatively high,” it said, but declines in the overall network activity, exchange in-flows, and onchain transaction volumes is contributing to the decrease in the price of bitcoin.
“This has been driven by an overall decrease in economic activity in relation to the price of BTC, as well as a slowing down of hodlers’ accumulation behavior; while hodlers are still accumulating, the rate at which they are doing so is declining,” Glassnode stated.
The third Bitcoin halving slashed revenues for mining companies by a significant margin. This resulted in high transaction fees. It will likely take several months before bitcoin turns bullish and possibly “over a year for the price to increase by an order of magnitude,” said Glassnode.