Bitcoin News
By Sakamoto Nashi
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Bitcoin (BTC) has soared to new heights, recently touching the $97,000 mark in one of its strongest rallies to date.
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Recent data reveals that despite Bitcoin’s price gains, network usage has failed to keep pace.
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So what’s causing this disconnect between price and actual usage? An analysis from Alphractal points to six major reasons behind the sluggish on-chain metrics, despite Bitcoin’s…
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The first and perhaps most significant factor is the influence of institutional investment. Bitcoin’s current rally is being fueled largely by capital inflows into Spot Bitcoin…
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Secondly, volatility—or the lack of it—is playing a role. Bitcoin has spent several weeks consolidating in a tight range between $92K and $95K.
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Another issue is misleading exchange volume. While Bitcoin appears to be trading at high volumes, a closer look suggests some of this may be artificial or inflated.
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Adding to the challenge is the growing competition from other blockchain networks. Ethereum, Solana, and even newer entrants like Base are increasingly becoming hubs for DeFi…
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Furthermore, Bitcoin’s original role as a decentralized payment method has lost momentum. Fewer merchants and users are using BTC for everyday transactions, opting instead for…
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Lastly, the rise of second-layer solutions like the Lightning Network is also skewing the numbers.
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All these factors point to a critical reality: Bitcoin’s soaring price is no longer tightly coupled with its blockchain usage.
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This decoupling could have significant implications for Bitcoin’s sustainability. Historically, strong on-chain activity—especially from retail users—has supported long-term…
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In conclusion, while Bitcoin’s climb to $97,000 marks an impressive milestone, it comes with a caveat.
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