The price of bitcoin has staged a remarkable recovery in August 2021 (Getty Images)
The price of bitcoin has staged a remarkable recovery in August 2021 (Getty Images)

#Bitcoin saw a record amount of #cryptocurrency transferred through its network this week – more than two thirds more than it experienced during the price run that took it to an all-time high back in April.

More than $188 billion worth of bitcoin was transferred on Tuesday, according to figures from blockchain data firm Glassnode, amid a buying frenzy that took its value above $50,000 for the first time since May.

Other leading cryptocurrencies – including Ethereum (ether), #Cardano (ada) and #Binance Coin – have also seen remarkable price increases in recent days, pushing the overall cryptocurrency market cap from $1.9 trillion to $2.1tn in less than a week.

The gains come after a major downturn between May and July, which saw the market cool off following a record-breaking run in the first four months of 2021.

It has been boosted by positive news in the crypto space, including PayPal’s decision to open up the ability to buy, sell and hold bitcoin to millions of UK customers.

The current high price could partly explain the record transfer volume, with some analysts claiming that it could encourage long-term holders to move their funds onto exchanges and cash in on profits.

“A report from Glassnode shows that the proportion of old bitcoins being spent on the network has once again increased as long-term holders take advantage of the currently high prices to realise profits,” said Alexandra Clark, a sales trader at the UK based digital asset broker GlobalBlock.

“Whilst uncertainty remains for bitcoin in the short-term, its long-term future is clear, with professionals and academics stating that bitcoin, and digital assets more generally, will replace fiat currencies over the next five to 10 years.”

By block head

Block Head is a blockchain journalist.