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Bitcoin transactions are pending at least weekly

May 11, 2020

Bitcoin halving (BTC) takes less than eight hours. The blockchain registers a slowdown in activity.

A Mempool advertisement website shows that the number of outstanding transactions is currently around 4,000, i.e. two transmission blocks.

While the blockchain is never completely erased due to a continuous flow of new transactions, The demand appears to be so low that the network can send all incoming requests.

Bitcoin transactions are pending at least weeklyBitcoin transactions are pending at least weekly

This is not uncommon because demand varies greatly between the different times of the day. The last time the mempool was “empty” was, according to the data, on May 6th.

Unconfirmed transactions in the past two weeks

Unconfirmed transactions in the past two weeks. Source: jochen-hoenicke.de

As Cointelegraph reported today, the network saw a dramatic increase in activity in the days before the halving.

calm before the storm

Network activity is often driven by large price movements, where traders quickly send their BTCs to exchanges. Although the price “halved” on May 10th, the price had stabilized at the time of printing, which partly explains the interruption of activity.

As Cointelegraph reported, the price of Bitcoin could continue to fall after the halving event. Traders currently seem to be undecided in which direction the BTC price will go, especially given the growing uncertainty in traditional financial markets.

Bitcoin’s correlation with the stock market has reached a level of 0.35 in recent months, making it a statistically significant value.

Correlation chart of BTC and SP 500, 90-day average

BTC and SP 500 correlation chart, 90-day average. Source: Coinmetrics.io

The halving takes place in the middle of the US trading day. It may combine its effects with the influence of traditional markets. The immediate consequence of halving the price is difficult to predict as the decline in the newly minted BTC contrasts with the well-known “sell the news” effect.

A recovery in equity markets could have a positive impact on Bitcoin’s price, although European markets are currently trading with a slight loss.

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