- Since the launch of ETFs, the number of active BTC addresses has decreased.
- However, the amount of BTC token transfers has increased, indicating high institutional interest.
The amount of Bitcoin [BTC] Token transfers have continued to rise despite the leading coin's poor price performance since the US Securities and Exchange Commission (SEC) approved all spot ETF applications on January 10.
In a new one reportCryptoQuant analyst Yonsei Dent noted that BTC's price action following ETF approval has resulted in a decline in the number of active addresses participating in transactions with the crypto asset.
According to data from CryptoQuantSince January 10, the daily number of unique active addresses involved in BTC transactions as senders or receivers has decreased by 13%.
Source: CryptoQuant1
Dent opined that this drop in BTC network activity “doesn’t necessarily have to be taken as a negative signal” as the coin continues to see a lot of token transfers.
Dent said:
“This significant increase in the number of tokens transferred per address can be seen as evidence that significant institutional capital and other large investors are entering the market in response to the ETF approval issue.”
Source: CryptoQuant
BTC spot ETF in the last week
AMBCrypto noted that the last trading week ended with $1 billion in spot BTC ETF volume, according to data from The Block dashboard. During the five-day trading period, volume fell 37%.
Additionally, the closing volume was the lowest the spot BTC ETF market has ever closed at since its launch in early January.
Source: The Block
According to data from The Block, the Grayscale Bitcoin Trust (GBTC) controlled a 38% share of the total BTC spot ETF market at press time. At the same time, GBTC's assets under management (AUM) totaled $21 billion.
Source: The Block
The mood seems to be improving
An assessment of BTC price movements on a daily chart revealed a gradual shift in market sentiment from bearish to bullish.
A key indicator of this shift was the coin’s Moving Average Convergence Divergence (MACD) indicator.
On January 28th, the MACD line (blue) crossed the trend line (orange) and was poised to rise above the zero line at press time.
Such an intersection signals the beginning of a new bull cycle caused by a gradual resurgence in demand for an asset.
Read Bitcoins [BTC] Price prediction 2024-25
Likewise, key momentum indicators were discovered in uptrend positions. BTC's Relative Strength Index (RSI) was at 52.78, while the Money Flow Index (MFI) showed a value of 50.72.
Source: TradingView
The values and positions of these indicators showed that buying pressure had begun to outpace coin sales.
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