In the past, Bitcoin’s price usually moved up when more people were using the blockchain. More transactions and wallet activity often meant more demand and higher prices. But things are changing.
Right now, Bitcoin is holding strong above $95,000, and many traders believe it could soon cross the $100,000 mark. Surprisingly, this is happening even though fewer people are using the Bitcoin network compared to before.
So why is Bitcoin still going up?
What’s Driving Bitcoin’s Price Now?
Crypto research firm Alphractal recently explained on X (formerly Twitter) that Bitcoin’s price is no longer closely tied to how active its network is. They shared a few reasons why that’s happening:
1. ETFs Changed the Game
Since January 2024, when the U.S. approved spot Bitcoin ETFs (a type of investment product), a lot of money has flowed into Bitcoin through these funds. This means big investors can now buy Bitcoin easily through regular stock markets, without even touching the blockchain.
Fun Fact: The first few weeks after the ETF approval brought in billions of dollars in investment, helping push Bitcoin’s price up from around $45,000 to over $70,000.
2. Low Volatility Means Fewer Transactions
Bitcoin prices haven’t been jumping up and down as much recently. Because of this, fewer traders are making moves, and that results in less on-chain activity (fewer people sending or receiving Bitcoin).
3. Speculation Over Everyday Use
Many people today are trading Bitcoin through futures, options, and other financial tools rather than actually sending it from one wallet to another. This kind of trading happens on exchanges, not directly on the blockchain.
4. Uncertainty in Global Markets
There’s still a lot of uncertainty in the global economy — from inflation concerns to changing interest rates. Because of that, many investors are just watching and waiting for clearer signs before taking big actions.
5. Fake Exchange Volume
Lastly, Alphractal mentioned that some of the trading volume reported by exchanges might be inflated or misleading. In simple terms, some platforms might be pretending there’s more activity than there really is, which can make it seem like demand is higher than it is.
Bitcoin Price Right Now
At the time of writing, Bitcoin is priced around $96,150, down 1% in the last 24 hours, but still up 2% over the past week, according to CoinGecko.
This shows that even if fewer people are actually using Bitcoin like cash, the price is still holding strong — thanks to large-scale investment and new financial products.
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