With the current political turmoil in Europe and the inverted yield curve, it is indeed challenging to define the short-term trend of Bitcoin – so, there could be volatility in the price action associated with the looming crisis.
The foremost factor affecting MPI is the total amount of coins sent from the affiliated miners’ wallets, as MPI equals the ratio of total miner outflow .
However, ‘fee total’ – the sum of all fees that are paid to coin miners – remains fairly low while the hash rate has risen since the dip of July 2021.
One of the common facets of on-chain analysis is to examine whether transactions are actively executed through exchanges or OTC desks.
In the meantime, the fund flow ratio – the ratio of coins transfers involving the exchange to the overall coins transfers network-wide – remains low, while the total token transferred on the network is volatile.
By applying Metcalf’s Law, where the value of a communications network is proportional to the square of the number of its users – the current intrinsic value of Bitcoin is increasing in terms of decentralization as it is proportionate to the square of the number of active addresses.