Key Points
- Bitcoin’s trade volume in the U.S has surged back to 2022 levels, indicating a growing interest.
- Profitability and velocity of Bitcoin have also increased, potentially leading to increased selling pressure.
Bitcoin [BTC] has recently seen a significant price increase, leading to a boost in optimism for the cryptocurrency. This price surge has also led to a notable increase in trading volume for BTC.
New data reveals that BTC trade volume during U.S trading hours has returned to the levels seen in 2022. This high volume of BTC transactions suggests that the U.S market has a strong interest in BTC, possibly to the point of saturation.
APAC Trading Volumes and Whale Behaviour
However, the same cannot be said for the Asia Pacific (APAC) region. Trading volumes during APAC hours were significantly lower, indicating a large group of individuals who have yet to engage with BTC. As BTC’s popularity continues to rise, it is expected that traders operating during APAC hours will begin to invest and trade BTC, potentially driving its price even higher.
As BTC approaches its previous all-time highs, there has been notable movement among long-term holders. A transaction involving 2,000 BTC was recently recorded, marking a significant shift in long-held assets. This “whale behaviour” could potentially lead to increased fear, uncertainty, and doubt (FUD) among holders and traders, potentially negatively affecting BTC’s price.
Current Market Conditions
At the time of writing, BTC was trading at $69,750.53, with a 0.04% growth in the last 24 hours. The trading velocity of BTC has also increased, indicating a higher frequency of trades.
The MVRV ratio for BTC has also significantly increased, suggesting that most addresses were profitable at the time of writing. While this is positive news for holders, it could potentially spell trouble for BTC’s price. As profitability increases, so does the incentive to sell. If holders begin to engage in profit-taking, this could negatively impact BTC’s price.
The Long/Short ratio, which compares the number of long-term holders to short-term holders on the network, was declining at the time of writing. This suggests a prevalence of short-term holders who are more likely to sell their holdings.
