Bitcoin (BTC), a leading cryptocurrency, has witnessed a significant price increase, reaching new highs above $70,000. Despite this bullish momentum, the transactional activity within the Bitcoin network shows a different story, one of caution and reservation. This behavior is evident in the diminished average volume of on-chain transactions when valued in USD, which remains significantly lower than the figures seen during the 2021 market upswing.
Market observers note that the reluctance to move value on-chain is indicative of a broader preference to hold onto Bitcoin. This trend is further supported by data from Glassnode, which monitors the USD value of all successfully executed BTC transactions on the network.
Current metrics reveal that both the seven-day and 14-day average transaction volumes are languishing below $200,000. This is a stark contrast to the bustling activity experienced during the previous bull run, where volumes regularly exceeded $1 million.
The substantial interest and adoption of spot Bitcoin ETFs listed on Nasdaq are identified as key drivers behind the recent price rally. This shift towards ETFs has naturally led to a decrease in direct on-chain transactions.
Moreover, additional indicators strengthen the theory that investors that weathered the 2022 market downturn are now keenly holding their assets. The expectation of an impending price surge, possibly reaching well beyond $150,000, fuels this sentiment.
An interesting metric to consider is the growing percentage of the Bitcoin supply that has not been active for three to five years. This signals long-term confidence among holders.
Bitcoin has maintained a relatively steady position, displaying a sideways trading trend over the past week. As of the latest data, Bitcoin is trading at $68,841, a 3.13% increase over the past day, signaling a marginal upward move. This stability reflects a market with both bullish and bearish traders seemingly locked in a tussle for dominance.
The cryptocurrency’s market capitalization has experienced a modest boost of 3.16%, reaching $1.32 trillion, ensuring its place at the top of the market cap rankings. Trading volume has surged by 29.27% in the last 24 hours, totaling $29.79 billion, indicating a significant level of trader engagement despite the lack of clear price direction.
