A recent Glassnode report shows that the state of the Bitcoin (BTC) network is nearing its peak despite halving mining premiums.
BTC on chain index
The company recently unveiled its blockchain-registered on-chain BTC (GNI) index, which captures a number of key on-chain metrics and combines them into easy-to-digest charts and numbers.
GNI has dropped from 76 to 74 points since last week. However One of the key metrics, “network health,” which combines network growth and activity, increased 6 points from 88 to 94. The two point decline in GNI is mainly due to the significant drop in “sentiment” represented by investor sentiment and austerity behavior, which decreased 23 points in the week before the halving.
Bitcoin is unstable
According to the report, we are currently not experiencing a bull or bear market because two of the key indicators differ: The price momentum was negative while the on-chain indicators remained strong. However The asset appears to be closer to a bullish pause than a bearish pause.
The hash or hash rate of Bitcoin is one of the main indicators of the status of the network. Some predicted a so-called “death spiral” after halving. However The report notes that the hashrate recovered quickly after the first crash after halving.
The following week, the first full week after halving, will be a good indicator of how the mining ecosystem has dealt with falling block rewards.