The Bitcoin price has experienced another week of undecided action, bubbling between the consolidation range of $ 105,000 and $ 110,000. The first cryptocurrency briefly interrupted the $ 110,000 mark on Thursday, July 3, but failed to hold over the psychologically relevant threshold on the day.
Despite the resilience of Bitcoin prices, market inactivity of a certain class of investors known as retail investors has persisted in recent weeks. According to the latest data on the chain, the absence of this cohort of investors leads to a rare phenomenon on the Bitcoin network.
What does an almost empty mempool mean?
In an article of July 4 on the X platform, the CEO of Alphractal and founder Joao Wedson revealed that the Bitcoin network is currently attended by a period of low activity. This trend in the minimal blockchain activity has led to a rare phenomenon where mempool is almost empty.
For the context, Mempool refers to a temporary storage zone where BTC’s awaiting transactions await to be confirmed. Mempool is generally congested during periods of high demand on the chain and network activity, as several transactions await treatment.
Source: @joao_wedson on X
However, recent data on the Alphracttal chain show that most transactions have been confirmed, leaving almost empty Mempool. The relevant chain metric here is Bitcoin Mempool transactions, which examines the number of BTC transactions in Mempool at a given time.
According to Joao Wedson, this event is a clear sign that retail investors have remained outside the market in recent months – because the almost nonexistent backwards reflects a reduced demand for the Bitcoin network. Consequently, a future increase in Mempool transactions could mean a return on demand for detail on the market.
Impact on the price of bitcoin
As a rule, a low transaction activity and an almost empty mempool are not a good sign for the price of the BTC, because it reflects a low request from retail investors. However, it is undeniable to deny the change of market since the launch of BTC funds negotiated in BTC (ETF)
As Bitcoinist reported it earlier, the Bitcoin price managed to remain stable despite the low retail request, thanks to institutional actors and investors ETF. BTC’s negotiated fundraising funds, for example, seem ready for their fourth consecutive week of positive capital entries.
To date, the BTC price amounts to around $ 107,700, reflecting a drop of almost 2% in the last 24 hours. According to Coingecko data, the flagship cryptocurrency has increased by almost 5% in the past two weeks.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock star image, tradingview graphic
Editorial process Because the bitcoinist is centered on the supply of in -depth, precise and impartial content. We confirm strict supply standards, and each page undergoes a diligent review by our team of high -level technology experts and experienced editors. This process guarantees the integrity, relevance and value of our content for our readers.
