Although Bitcoin (BTC) is facing one of its toughest moments in 2022, data shows that the BTC blockchain is still responsible for a significant number of transactions.
Over $8 trillion has been processed on the Bitcoin blockchain!
Despite falling prices, a staggering $8.2 trillion was transferred via the Bitcoin blockchain last year. According to data estimates by crypto analytics firm CoinMetrics, the figure averages $260,000 per second.
Bitcoin blockchain transaction chart for 2022. Source: CoinMetrics
Meaning of Bitcoin’s blockchain transactions
The size of the transaction amid the bear market highlights the possible increased adoption of Bitcoin and its role in the overall financial system. From the data, the number of transactions on the blockchain dropped significantly in the second half of the year in conjunction with the asset’s price action.
While Bitcoin was in free fall for much of 2022, the number one digital asset by market cap experienced a relief rally in early November after gaining support from positive macroeconomic factors. However, the rally seems to have had little effect on the number of trades.
Trading volume may also be welcomed by Bitcoin advocates, who may see the data as a sign of the asset’s maturity to gain integration into the mainstream financial industry. Interestingly, the extended bear market has resulted in skeptics suggesting that Bitcoin will likely drop to zero.
In particular, Bitcoin has operated in an environment of investor skepticism, with the asset hampered by factors such as rising inflation and regulatory uncertainty.
Bitcoin still faces uncertainty
At the same time, Bitcoin was also hit by the collapse of the FTX crypto exchange, whose effects are projected to spread into 2023. According to a Finbold report, the impact of the price correction also caused Bitcoin millionaires to drop by over 70% in 2022.
Additionally, considering that Bitcoin is still operating in a hyperinflationary environment with uncertainty regarding Federal Reserve monetary policy, the price correction could take even longer.
Indeed, if the market records a rally, the amount transferred to the Bitcoin blockchain will likely increase.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,844, posting small gains of less than 1% in the last 24 hours. On the weekly chart, BTC is up over 1%.
Bitcoin seven-day price chart. Source: Finbold
Currently, the flagship cryptocurrency also controls a market capitalization of around $324.37 billion. With economic uncertainty reigning, forecasts suggest that Bitcoin will undergo a lengthy price correction in 2023.
Specifically, the machine learning algorithm at PricePredictions shows that the asset could trade at $15,532 on January 31, 2023.
Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.
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