Bitcoin is surging again, with the world’s most widely traded cryptocurrency rising the most in a month on Tuesday as it came close to breaking past $9,000.
There’s just one thing missing from this Bitcoin rally: “Actual Bitcoin usage is particularly underwhelming,” Mati Greenspan of Quantum Economics wrote to newsletter subscribers Wednesday.
After spending the start of 2019 looking like it was stuck at about $4,000, Bitcoin rallied over the summer, hitting about $12,000 before giving up a big chunk of those gains. There was another big rally in Bitcoin in the fall, which faded as the new year approached.
Bitcoin is now in the midst of what is effectively its third revival in less than 12 months, with the cryptocurrency up more than 11% last week and about 10% on Tuesday alone. It has gained 1.3% in the past 24 hours to $8,817.56. (It peaked at $19,891 on Dec. 17, 2017.)
What hasn’t risen, Greenspan pointed out, is the volume of recorded transactions that involve Bitcoin. “The transactions per second rate has leveled off at about 3.6, which is not bad but the amount of money being transferred seems pretty low compared to what we’ve grown accustomed to seeing during these rallies,” he wrote.
Indeed, the total value of Bitcoin transactions is now below than $1 billion, less than half the value of transactions that were logged during the summer rally.
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