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Bitcoin set for a new peak? U.S. trading volumes hit 2-year high

May 24, 2024
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Bitcoin set for a new peak? U.S. trading volumes hit 2-year high
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  • Bitcoin volumes in U.S surged and reached 2022 levels.
  • The profitability of holders grew along with the velocity of BTC.

Bitcoin [BTC] witnessed a massive surge in price over the last few days, causing a spike in optimism for BTC during this period. Due to this surge in price, there was a massive spike in terms of volume for BTC as well.

Volumes on the rise

According to new data, BTC trade volume during US hours had returned to 2022 levels. The high volume of BTC transactions in America indicated that the U.S market was showing massive interest in BTC and may have even reached saturation.

However, on APAC (Asia Pacific) front, it wasn’t the case. The volume during APAC trading hours were significantly lower. This meant that there was a large cohort of people that had still not interacted with BTC.

As the popularity of BTC grows, traders operating during APAC hours may soon invest and trade BTC which may drive the price of BTC to new heights.

Source: X

As BTC began to reach its previously established all time highs, many old holders were observed to be moving their holdings. Recently, an on-chain movement of over 10-year-old Bitcoin was recorded.

A transaction involving 2,000 BTC was sent in block 844625, marking a significant shift in long-held assets.

Whales make moves

This whale behaviour could cause a rise in FUD amongst holders and traders alike, and may cause a negative impact on BTC’s price.

At press time, BTC was trading at $69,750.53  and its price had grown by 0.04% in the last 24 hours.

See also  Bitcoin: Why a correction below $60k could be good news for BTC bulls

Moreover, the velocity at which it was trading at had grown, implying the frequency at which BTC was trading at had also increased.

Coupled with that, the MVRV ratio for BTC had also significantly grown, implying that most addresses were profitable at the time of writing. Even though this is positive for the holders, it could mean trouble for BTC’s price.

As profitability rises, so does the incentive to sell. If holders begin to indulge in profit-taking, BTC’s price can be negatively impacted. A factor that can determine the likelihood of an address selling their BTC is the Long/Short ratio.


Read Bitcoin’s [BTC] Price Prediction 2024-25


The Long/Short ratio showcases the number of long term holders compared to short-term holders on the network.

At press time, this ratio was declining, indicating a prevalence of short term holders who are more likely to sell their holdings.

Source: Santiment

 

Previous: Ethereum ETFs approved! ETH prices to hike by 28% now?
Next: DeFi TVL hits $106B: Was Lido the biggest contributor?

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

Spot Bitcoin ETF Options – How U.S exposure is set to soar after CFTC’s notice

  • Bitcoin volumes in U.S surged and reached 2022 levels.
  • The profitability of holders grew along with the velocity of BTC.

Bitcoin [BTC] witnessed a massive surge in price over the last few days, causing a spike in optimism for BTC during this period. Due to this surge in price, there was a massive spike in terms of volume for BTC as well.

See also  Argentina Energy Provider Seals New Bitcoin Mining Deal

Volumes on the rise

According to new data, BTC trade volume during US hours had returned to 2022 levels. The high volume of BTC transactions in America indicated that the U.S market was showing massive interest in BTC and may have even reached saturation.

However, on APAC (Asia Pacific) front, it wasn’t the case. The volume during APAC trading hours were significantly lower. This meant that there was a large cohort of people that had still not interacted with BTC.

As the popularity of BTC grows, traders operating during APAC hours may soon invest and trade BTC which may drive the price of BTC to new heights.

Source: X

As BTC began to reach its previously established all time highs, many old holders were observed to be moving their holdings. Recently, an on-chain movement of over 10-year-old Bitcoin was recorded.

A transaction involving 2,000 BTC was sent in block 844625, marking a significant shift in long-held assets.

Whales make moves

This whale behaviour could cause a rise in FUD amongst holders and traders alike, and may cause a negative impact on BTC’s price.

At press time, BTC was trading at $69,750.53  and its price had grown by 0.04% in the last 24 hours.

Moreover, the velocity at which it was trading at had grown, implying the frequency at which BTC was trading at had also increased.

Coupled with that, the MVRV ratio for BTC had also significantly grown, implying that most addresses were profitable at the time of writing. Even though this is positive for the holders, it could mean trouble for BTC’s price.

See also  Bitcoin Cracks $39.5k, ETH Back to Pre-FTX levels, DePIN Tokens are Booming...What Could Go Wrong?

As profitability rises, so does the incentive to sell. If holders begin to indulge in profit-taking, BTC’s price can be negatively impacted. A factor that can determine the likelihood of an address selling their BTC is the Long/Short ratio.


Read Bitcoin’s [BTC] Price Prediction 2024-25


The Long/Short ratio showcases the number of long term holders compared to short-term holders on the network.

At press time, this ratio was declining, indicating a prevalence of short term holders who are more likely to sell their holdings.

Source: Santiment

 

Previous: Ethereum ETFs approved! ETH prices to hike by 28% now?
Next: DeFi TVL hits $106B: Was Lido the biggest contributor?
Tags: 2yearBitcoinHighhitPeaksetTradingU.SVolumes

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

September 10, 2024

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EDITOR'S PICK

Analyst Predicts Long Road Ahead to $2,850—Here’s Why

Analyst Predicts Long Road Ahead to $2,850—Here’s Why

September 12, 2024
Singapore court authorizes freeze order attached to wallets as soulbound NFT

Singapore court authorizes freeze order attached to wallets as soulbound NFT

October 21, 2023
After Nearly 100 EH/s Exodus, Block Times Stretch to 10:34—What’s Next for Bitcoin Miners?

After Nearly 100 EH/s Exodus, Block Times Stretch to 10:34—What’s Next for Bitcoin Miners?

April 26, 2025
As Bitcoin climbs back above $62k, why is this group selling?

As Bitcoin climbs back above $62k, why is this group selling?

May 13, 2024

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