Recent data analytics from Glassnode have revealed that despite Bitcoin reaching unprecedented price levels, surpassing the $70,000 mark, on-chain transaction volumes in terms of US dollars are significantly below the zenith witnessed in 2021. This pattern suggests a prevailing sentiment among investors to hold onto their Bitcoin rather than selling, betting on future price surges and exhibiting a robust trend of asset retention in the marketplace. Analysts interpret this as a manifestation of a strong HODL mindset among cryptocurrency participants.
Market Observes Lower Transaction Volumes Despite High Bitcoin Value
Even with Bitcoin hitting a record high of $73,750, there is a noticeable decline in economic transactions on its blockchain. Analysts from Blockware Solutions highlight a discrepancy between the soaring price and the muted on-chain dollar volume. Current data shows average transfer volumes to be under $200,000, a stark contrast to the 2021 bull market where figures exceeded $1 million.
The spike in Bitcoin’s value is attributed to Wall Street’s growing interest in spot Bitcoin ETFs on Nasdaq and the concentration of volume within these ETFs. Conversely, the on-chain volume remains subdued, signaling a collective investor decision to retain Bitcoin post the 2022 bear market in anticipation of further price appreciation.
Supply Stagnation Suggests a Strategic Wait for Higher Prices
Blockware Solutions analysts further speculate that a significant price movement for Bitcoin will precipitate an increase in on-chain volume as seasoned Bitcoin holders may begin moving assets to exchanges for sale. The current low volume hints at a scarcity of supply-side liquidity and underlines the investor reluctance to sell their holdings.
The data also shows a growing portion of Bitcoin that has remained inactive for 3 to 4 years, reflecting the confidence of long-term investors. Projections from experts suggest that Bitcoin’s price could ascend to six figures in the near term, possibly breaching $150,000 in the long run. Presently, Bitcoin trades at $67,260 with a market capitalization of $1.32 trillion, marking a 3.57% rise over the past day according to CoinMarketCap.