Key Points
- Bitcoin’s seven-day trading volume has dipped below $14 billion, despite its price increase.
- There’s a significant increase in long-term holders of Bitcoin, indicating a more stable market.
The excitement around Bitcoin’s soaring price is tempered by a decrease in trading volume. Data indicates that Bitcoin’s seven-day trading volume has fallen under $14 billion, a level last seen in 2023 when Bitcoin was trading under $30,000.
Bitcoin Volumes and Profitability
This decrease in volume could be a worrying sign of a cooling market. However, it might also be viewed positively as more Bitcoin addresses are choosing to hold onto their Bitcoin. At the time of writing, Bitcoin was trading at $68,899.70, with its price increasing by 2.14% over the last 24 hours.
The MVRV ratio for Bitcoin has also risen, suggesting that most holders have become profitable recently. This surge in profitability could tempt more holders to sell, potentially driving Bitcoin’s price down.
Long-Term Holders Increase
However, the Long/Short difference for Bitcoin has also increased, indicating a significant rise in long-term holders. These holders are less likely to sell during price fluctuations, contributing to a more stable market.
Another measure of interest in Bitcoin is the number of active addresses on the network. Recent data shows a significant drop in daily addresses over recent weeks. This could be due to the current state of the NFT sector, which has seen a decline in sales, buyers, and sellers.
If network activity continues to decrease, it could impact miner revenue. Recently, daily revenue generated by Bitcoin miners has fallen significantly. If this trend continues, miners may need to sell their holdings for profit, which could put downward pressure on Bitcoin’s price.
