A recent report from Glassnode indicates that Bitcoin (BTC) network health is close to its maximum despite the recent halving of miner rewards.
On-chain BTC Index
The company has recently introduced its on-chain BTC Index (GNI) that captures a number of key on-chain metrics and combines them into easily digestible charts and numbers.
The GNI has decreased from 76 points to 74 points since last week. However, one of the key metrics, ‘Network Health,’ which combines network growth and network activity, has jumped 6 points, from 88 to 94. The two-point dip in GNI is mostly due to the significant decrease in “Sentiment” as captured by investor sentiment and saving behavior, which dropped 23 points in the week culminating in the halving.
Bitcoin is unstable
According to the report, we’re currently witnessing neither a bull, nor a bear market, as two of the key indicators diverge — the price momentum was negative while on-chain indicators remained strong. However, the asset seems closer to a bull than bear breakout.
Bitcoin’s hashrate is one of the most important indicators of the network’s health. Some were predicting a so-called “death spiral” after the halving. However, the report points out that the hashrate has quickly recovered after the initial post-halving drop.
The following week, the first full week after the halving, will be a good indicator of how the mining ecosystem has coped with the decrease in the block reward.