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Bitcoin's mempool has cleared for the first time since November 2020. According to Timothy Peterson, investment manager of Сane Island Alternative Advisors company, clearing of the mempool could indicate a market crash.
The #bitcoin mempool is a good indicator of bubbles. The mempool is where pending transactions wait to be processed before being added to the #blockchain. This week it has cleared out for the first time since Nov 2020 (pre-bubble). pic.twitter.com/okfpBwazV8
— Timothy Peterson (@nsquaredcrypto) June 13, 2021
He notes the largest digital currency's mempool is an excellent indicator of demand. Clearing the mempool may also indicate the BTC demand has reached its lowest levels. It exerts downward pressure on the asset's price:
Price *should* adjust down to Metcalfe value over the coming months, but leverage and inertia may help prop it up.
A mempool is the place where Bitcoin network transactions wait to be processed before being added to the blockchain.
In February, the number of pending transactions in the Bitcoin network's mempool exceeded 125,000, which is equivalent to about 149 megabytes of data. This was enough to fill at least 107 of the following blocks.
Two months earlier, in December 2020, more than 143,000 unconfirmed transactions accumulated in the mempool were accumulated. Before that, the mempool was cleared to zero in January 2020. All this time, there was a bull market.