- Bitcoin’s price surge has pushed spot trading volumes to multi-year highs
- The market also saw an influx of new investors this year
Bitcoins [BTC] According to Glassnode, the price rally that began in October 2023 has pushed spot trading volumes to 2020-2021 bull market highs report.
According to the on-chain data provider, while the recent headwinds faced by BTC price have resulted in a slight decline, the coin's daily spot trading volume is currently around $7 billion.
Source: Glassnode
Glassnode evaluated the coin's spot trading volume by comparing the metric's 180-day moving average (slow) and 30-day moving average (fast). This comparison showed that since the market rally began in October 2023, the BTC market “has seen faster average trading significantly higher than slower ones.”
The on-chain data provider added that this suggests the coin’s year-to-date growth is “supported by strong demand in spot markets.”
In addition to the increase in the coin's spot trading volume, BTC's price rally has also led to an increase in coin flow in and out of cryptocurrency exchanges. Glassnode said:
“The monthly average of total foreign exchange flows (inflows plus outflows) is currently $8.19 billion per day, well above the peak in the 2020-2021 bull market.”
Increase in new demand
The ongoing rally has also led to an increase in the number of new investors holding BTC. As long-term holders cash out their long-held coins to make profits, they have been snapped up by new investors looking to capitalize on the market recovery.
Glassnode assessed BTC's Realized Cap HODL Waves and found that there has been a rally in the “proportion of assets held by coins less than six months old.”
In fact, the supply of BTC held by addresses less than six months old has increased significantly over the past year. The same figure was 47% at press time.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2024-25
According to Glassnode,
“This suggests that the capital held by the Bitcoin holder base is roughly balanced between long-term holders and new demand.”
Finally, it should be noted that Glassnode also claimed that it is crucial to pay attention to the behavior of these new investors as “their part in the capital increases.”
This is because this cohort of BTC holders are typically more price sensitive than long-term holders (LTHs). They have their coins easily accessible and ready to offload them as soon as the price of BTC falls below their cost basis.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.