The Bitcoin price trend in the cryptocurrency market has confused many as it continues to fluctuate. The world’s leading digital asset plunged to the $66,000 zone after a brief bullish climb to over $68,500 over the weekend.
Interestingly, Bitcoin has some positive developments. These lie in network fundamentals like hashrate, mining difficulty, and active addresses. According to CryptoQuant, a leading on-chain analytics platform, Bitcoin network fundamentals have turned positive. This signals a possible future bullish impact on price soon.
Bitcoin Network Fundamentals Strengthen Amid Market Volatility
CryptoQuant’s post on X suggests that Bitcoin network fundamentals – network difficulty, transaction volume, miners’ revenue, and hashrate – all remain crucial indicators of the strength and security of the network. Notably, Bitcoin’s hashrate has hit a new all-time high (ATH), indicating increased mining competition.
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As per the on-chain analysis, increasing hashrate and mining difficulty are strong indicators of Bitcoin’s growing attractiveness to investors. Meanwhile, there has been a spike in the number of active Bitcoin addresses since mid-September. The active addresses and increase in on-chain transactions serve as another indicator of the looming bullish season.
According to CryptoQuant, all the above metrics show patterns mirroring those seen in previous bullish periods. This has fueled optimism that Bitcoin, despite recent price fluctuations, might soon record positive price movements. The underlying network fundamentals support this confidence.
However, the post warns that Bitcoin might experience a price correction or consolidation phase before the bull run. Overall, CryptoQuant’s message paints an optimistic future for Bitcoin supported by its network fundamentals.
Does Rising Mining Difficulty Indicate Bullish Sentiment?
The hashrate identified by CryptoQuant as one of the positive bullish signals crossed over 700 exahashes per second (EH/s). It coincides with Bitcoin mining difficulty registering an ATH of 95.67 terahashes (T) on October 20. This represents a 3.9% increase, while its year-to-date increase stands at 27%, as it jumped from 72 T to 92 T.
Generally, as mining difficulty increases, the industry faces revenue generation pressures. This results from rising operational costs and investment in mining equipment. However, a silver lining is that when surging mining revenue overlaps, a price increase follows.
Data from Glassnode shows that on a 7-day moving average, the cumulative mining revenue has crossed $35 million. Meanwhile, since the halving event in April, mining revenue has stayed below the 365-Simple Moving Average (SMA).
Based on precedent, once the cumulative miner revenue crosses 365-SMA, Bitcoin witnesses a bull run.
Analysts Predict a $200,000 Bitcoin Price by 2025
Bitcoin fundamentals are teasing a bullish season soon. Barring a market correction and consolidation phase, Bernstein analysts have made notable predictions. The brokerage firm’s analysts remain optimistic that by December 2025, BTC’s value will soar to around $200,000.
According to the analysts, this figure represents a modest projection of the world’s leading digital asset. They advised skeptics to consider making reasonable investments in Bitcoin, particularly as a hedge against inflation and the rising debt profile of the United States. This prediction aligns with other analysts, like Max Keiser, who forecasts a Bitcoin ATH of $220,000.
Gautam Chhugani, Bernstein’s digital assets lead, maintained that investors reluctant to take a Bitcoin position should consider industry-related shares. Chhugani mentioned MicroStrategy, the largest single corporate holder of Bitcoin, as an option. Others include companies involved in power provision for Bitcoin mining and those involved in Artificial Intelligence (AI) hosting services.
As of this writing, data shows that BTC’s price plummeted by 2.53% and was traded for $65,611.34.
