Bitcoin price witnessed Another week with indecisive actionBubbing between the $ 105,000 and $ 110,000 consolidation area. Premier Cryptocurrency briefly broke over the $ 110,000 mark on Thursday, July 3, but failed to stay above the psychologically relevant threshold of the day.
Despite Bitcoin’s price resistance, the market’s inactivity in a certain class of investors has been known as retail investors remaining in recent weeks. According to the latest data on the chain, the absence of this investor cohort leads to a rare phenomenon in the Bitcoin network.
What does an almost empty mem pool mean?
In a July 4 post on the X platform, Alphractal CEO and founder Joao Wedson revealed that the Bitcoin network is currently witnessing a period of low activity. This trend with minimal blockchain activity has led to an unusual phenomenon where the mem pool is almost empty.
For context, Mempool refers to a temporary storage area where waiting BTC transactions are waiting to be confirmed. The Mempool is usually overloaded during periods with increased demand for the chain and network activity, as several transactions are waiting for treatment.
Source: @joao_wedson on X
However, the latest information on the chain from Alphractal shows that most transactions have been confirmed, leaving Mempool almost empty. The relevant metric on the chain here is Bitcoin Mempool transactionsthat looks at the number of BTC transactions in Mempool at a certain time.
According to Joao Wedson, this event is a clear sign that retail investors have stayed outside the market in recent months – as the almost non -existent order stock reflects reduced demand for the Bitcoin network. Therefore, a future increase in the Mempool transactions can mean a return on the retail trade in the market.
Impact on the bitcoin price
Usually, low transaction activity and an almost empty Mempool are not a good sign for the price of BTC, as it reflects low demand from retail investors. However, no one denies the change in the market since the launch of Spot BTC Exchange-Traded Funds (ETF)
As Reported bitcoinist Previously, the Bitcoin price has managed to remain stable despite the low retail requirement, thanks to institutional players and Spot ETF investors. For example, the BTC-trained funds look like for their fourth week in a row with positive capital inflows.
From this writing, the price of BTC amounts to about $ 107,700, which reflects an almost 2% decline over the past 24 hours. According to data from Coytecko, the flagship Cryptocurrency increases by almost 5% over the past two weeks.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
Editorial process For Bitcoinist is centered on delivering thoroughly investigated, correct and impartial content. We maintain strict purchasing standards, and each page undergoes frequent review of our team of top technological experts and experienced editors. This process ensures integrity, relevance and value of our content for our readers.