- Bitcoin volumes in the US soared, reaching 2022 levels.
- Holder profitability grew at the speed of BTC.
Bitcoin [BTC] witnessed a massive price increase in recent days, causing a spike in optimism for BTC during this period. As a result of this price increase, there was also a huge volume spike for BTC.
Volumes are increasing
According to new data, BTC trading volume during US hours had returned to 2022 levels. The large number of BTC transactions in America indicated that the US market was showing huge interest in BTC and may have even reached saturation.
However, on the APAC (Asia-Pacific) front, this was not the case. Volume during APAC trading hours was significantly lower. This meant that there was a large group of people who still had not interacted with BTC.
As BTC’s popularity grows, traders active during APAC hours will soon be able to invest and trade BTC, which could drive the price of BTC to new highs.
Source:
When BTC started reaching its previously set all-time highs, many long-time holders were observed 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 movements
This whale behavior could cause a rise in FUD among both holders and traders, and could negatively impact the price of BTC.
At the time of writing, BTC was trading at $69,750.53 and its price was up 0.04% in the past 24 hours.
Furthermore, the speed at which BTC traded had increased, implying that the frequency at which BTC traded had also increased.
Coupled with this, the MVRV ratio for BTC had also grown significantly, implying that most addresses were profitable at the time of writing. While this is positive for holders, it could spell trouble for the price of BTC.
As profitability increases, so does the incentive to sell. If holders start to indulge in profit taking, the price of BTC could be negatively affected. One factor that can determine the likelihood of an address selling its BTC is the Long/Short ratio.
Read Bitcoin’s [BTC] Price forecast 2024-25
The Long/Short ratio shows the number of long-term holders compared to short-term holders on the network.
At the time of writing, this ratio was declining, indicating a predominance of short-term holders who are more likely to sell their holdings.
Source: Santiment