- Derivatives and spot trading volume and exchange outflow have all declined over the past month.
- However, the number of long-term Bitcoin holders has continued to increase.
Bitcoins [BTC] The uptrend has encountered an obstacle in recent months, which has dampened its growth and raised concerns. Specific metrics pointed to a decline that could be a key factor.
How much are 1.10.100 BTCs worth today?
However, despite this apparent stagnation, the number of loyal long-term owners has remained remarkably stable and shown resilience.
Bitcoin is seeing a decline in key metrics
A recent article by CryptoQuant sheds light on why Bitcoin’s price rise has been sluggish of late. The decline in two key BTC metrics and a stablecoin metric significantly impacted this slow progress.
The key metrics were BTC trading volume, exchange outflow, and stablecoin inflow.
An analysis of these metrics for July showed that they had experienced a decline. Both BTC spot and derivatives trading volumes showed no significant daily spikes compared to previous months, according to CryptoQuant.
The highest volumes in July were recorded on the 6th and 14th of the month. On July 6, spot trading volume reached about 114,000 while derivatives volume surpassed 1.3 million. On July 14, spot trading was 104,000 and derivatives trading exceeded 988,000.
Source: CryptoQuant
However, these highs were lower than the levels reached in previous months, indicating a slowdown in overall trading activity.
Furthermore, the rate of BTC outflow from exchanges decreased in July as shown in the BTC exchange outflows chart. Although some days saw impressive outflow numbers, the overall trend suggested more holders were depositing their BTC on exchanges rather than withdrawing them.
Source: CryptoQuant
In addition, the inflow metric of the stablecoins exchange was analyzed and a significant drop was noted. The chart showed a sharp drop in stablecoin inflow to exchanges, suggesting a drop in buying pressure.
Source: CryptoQuant
These declines in key metrics suggest that sentiment surrounding Bitcoin was bearish at press time. The conclusion was that BTC’s price would likely struggle to make significant gains.
The number of long-term Bitcoin holders is increasing
Despite Bitcoin’s stagnant growth, the community of long-term holders remained undeterred and continued to grow. An intriguing look at Glassnode’s most recently active chart showed an uptrend in the two-year band.
At the beginning of the year, this band accounted for around 47% of the total supply. However, as of this writing, the proportion has risen to over 56%.
Source: Glassnode
This significant increase in range indicated that more holders had withdrawn their assets from exchanges. Additionally, these assets have remained unaffected by trading activity over the past two years. Essentially, this suggests that a growing number of investors are committing to holding onto their bitcoins for the long term.
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BTC decline continues
Bitcoin’s daily time frame chart showed that the price decline continued. At the time of this writing, the price was declining, although it was down less than 1%. Specifically, the price was trading around $29,100, which indicates a continuation of the downtrend.
The decline was further confirmed by a decline in the Relative Strength Index (RSI), which indicates strong selling pressure.
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