Bitcoin prices bubbly between the $105,000 and $110,000 integrated ranges, witnessing an additional week of indecisive behaviour. The best cryptocurrency easily surpassed the $110,000 mark on Thursday, July 3rd, but failed to hold past the psychologically relevant threshold of the day.
Despite the resilience of Bitcoin’s price, the market inactivity of certain classes of investors known as retail investors has been persisting over the past few weeks. According to the latest on-chain data, this lack of investor cohort leads to a rare phenomenon in the Bitcoin network.
What does mostly empty Mempur mean?
In a July 4th 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 in minimal blockchain activity has led to an unusual phenomenon where members are mostly empty.
For context, Mempool refers to a temporary storage area where pending BTC transactions are acknowledged. Memory is usually crowded during periods of chain demand and rising network activity as some transactions are waiting to be processed.
Source: @joao_wedson on X
However, recent chain data for Alphractal shows that most transactions have been seen and Mempool is almost empty. The relevant on-chain metric here is the Bitcoin Mempool transaction, which examines the number of BTC transactions in Mempool at a particular time.
According to Joao Wedson, the outbreak reveals retail investors have been away from the market for the past few months. Therefore, future increases in Mempool trading could mean returning retail demand to the market.
Impact on Bitcoin Price
Usually, low trading activity and almost empty memory are not a good indication of BTC prices, as there is low demand from retail investors. However, since the launch of Spot BTC Exchange-Traded Funds (ETF), we have not denied any market change.
As Bitconist previously reported, Bitcoin prices remained stable despite low retail demand thanks to institutional players and spot ETF investors. For example, BTC Exchange-Traded Funds has been set to be an aggressive capital inflow for the fourth consecutive week.
At the time of writing, BTC priced around $107,700, reflecting a nearly 2% decline over the past 24 hours. According to Coingecko data, flagship cryptocurrencies have risen by almost 5% over the past two weeks.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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