Despite worries about mining after halving, the health of the Bitcoin network remains good.
According to Glassnode, the health of the Bitcoin network (BTC) is reaching its maximum level despite recently reducing miners’ rewards.
BTC index in the chain
The company recently established the BTC Chain Index (GNI) that records a number of key metrics in the chain and connetcs them into easy-to-digest charts and numbers.
GNI has dropped from 76 points to 74 points since last week. However, one of the key metrics, ‘Network Health,’ which combines network growth and activity, jumped 6 points, from 88 to 94. The two-point decline in GNI was largely due to the sharp decline in “Sentiment” as captured by investor sentiment and behavior. saving behavior, which drops to 23 points a week which tops halving.
Bitcoin is volatile
At this time we are not watching the bull market, or bear, because the two key indicators are different – the price momentum is negative while the chain indicator remains strong. However, the asset looks closer to the bull than the penetration of the bear.
Bitcoin hashrate is among the most vital indicators of network health. Some predict what is called a “death spiral” after halving. However, the report shows that the hashrate recovers quickly after the initial decline after halving.
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