The past couple of days have seen the Bitcoin network go through a huge spike in transaction output activity, reaching almost 25 million BTC on Aug. 21. However, data from TokenAnalyst showed that this could be explained by a sudden rise in the number of addresses sending funds to themselves, with a single Bitcoin address at the heart of it.
Bitcoin network sees the highest transaction output activity ever
The world’s largest cryptocurrency has had a very turbulent week. After a sudden drop, Bitcoin managed to consolidate around $10,000, prompting many to believe something big might be in stock soon.
Meanwhile, the total value of transactions on the Bitcoin network has been painting a much different picture. Namely, Bitcoin saw a sudden spike in the total value of transaction output, reaching the highest level in the past two years.
Data from Blockchain.com showed that the network saw an output of 24.5 million BTC on Aug. 21, an incredible increase from the 966,000 BTC recorded just three days earlier, on Aug. 18.
This is the second-highest transaction output in Bitcoin’s history, as Jan. 24, 2016 saw the highest ever total value of transactions — 38.4 million BTC.
Large spikes in activity often happening before a significant price move, both upwards and downwards.
Change volume responsible for a massive spike in activity
However, several analysts pointed out that the sudden spike in network activity was caused by a single factor. Data from TokenAnalyst showed that the spike in the total value of transaction correlates to an equally significant spike in change volume.
Change volume, or change related volume, is a term used to describe transactions where Bitcoin addresses send funds to themselves.