Following four months of increased transaction volumes, $1.21 trillion worth of Bitcoin was moved on-chain in January 2024. This is the most value moved on-chain since September 2022, when the price of Bitcoin was around $20,000. Data from The Block.
The fact that Bitcoin volume did not exceed $1 trillion in each month except December of 2023, and the fact that Bitcoin’s active supply is at a record low level, suggests that traders may want to invest in the Spot Bitcoin ETF. It shows that they are looking forward to approval. With the final approval of these ETFs, trading volume appears to be increasing accordingly. In fact, only $550 billion in trading volume was moved in September 2023, while January marked the fourth consecutive month of trading volume growth.
Glassnode analysts say long-term Bitcoin holders don’t seem to be willing to part with their coins at this point, but rather are “calmly riding the market wave.” In fact, monthly transactions on the Bitcoin network actually decreased from December 2023 to January 2024, according to data from The Block.
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