Why the drop in Bitcoin UTXOs, transactions, and fees is not bearish

UTXO consolidation amid low fees indicates network efficiency, not waning Bitcoin demand.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin's on-chain activity has been puzzling analysts with its recent decline in transaction counts, UTXOs, and fees. This might initially ring alarm bells about waning demand, but a closer examination reveals a different narrative. As fees plunge to historic lows, an intriguing opportunity emerges, enticing large holders to optimize their UTXO structures. But here's the fascinating twist—why does Bitcoin remain priced firmly above $90,000 amidst shrinking on-chain activity? Discover the missing piece in this evolving market puzzle…