The article highlights a concerning trend in Bitcoin's price rally, particularly its recent surge past the 100k USD mark, which does not correlate with increases in transaction feerates. Historically, price spikes have reflected active on-chain trading behavior; however, the current market seems driven by institutional investors trading ETF shares rather than individual users managing their own Bitcoin. This shift suggests a deterioration of Bitcoin's fundamental decentralized ethos, potentially undermining its ecosystem and the normal transaction dynamics that support the network's health.
"This last leg up to over 100k does not seem at all to have had the same proportional effect on feerates that even moves earlier in this cycle have."
"Participants driving the market are changing from self-custodians to those trading ETF shares, diminishing the on-chain transaction activity essential to Bitcoin's nature."
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