- Despite Grayscale’s ETF developments, Bitcoin’s price stagnated, raising concerns.
- The accumulation of whales and outdated Bitcoin movements indicated potential market shifts.
Despite Grayscale’s ETF getting closer to the green light, Bitcoin’s price [BTC] stood still. This event made many traders pessimistic about whether Bitcoin will see growth in the future.
Read Bitcoin’s [BTC] Price forecast 2023-2024
Whales come in
However, according to Santiment, whale accumulation increased. In particular, sixteen wallets with between 100 and 1,000 BTC. As the key stakeholders expanded, the case for a bullish future became stronger.
Source: Santiment
Meanwhile, there was a notable movement of older BTC. More than 16,000 Bitcoins between two and five years old have recently been moved. Transactions of this size and age are relatively rare in the Bitcoin network, and this occurrence has received significant attention.
???? NOW: Notable Transactions on the Bitcoin Blockchain
More than 16,000 bitcoins between 2 and 5 years old have just been placed on the blockchain. Transactions of this size and age are relatively rare ????https://t.co/zoUGtz05V8 pic.twitter.com/757nEk3Qxn
— Maartunn (@JA_Maartun) October 14, 2023
The transaction volume on the Bitcoin network also increased significantly. Recently, Glassnode data reported that average transaction volume on a seven-day moving average hit a five-month high at $324.79.
This increase in activity reflected an increasing number of transactions on the Bitcoin blockchain, which could have several effects on the market.
Higher transaction volume could indicate increasing adoption and use of Bitcoin, but could also lead to more network congestion.
???? #Bitcoin $BTC Average transaction volume (7d MA) just hit a five-month high of $324.79
The previous five-month high of $322.80 was observed on October 5, 2023
View statistics:https://t.co/Oqu9AN81mM pic.twitter.com/nS7KFyOwsJ
— Glassnode Alerts (@glassnodealerts) October 6, 2023
Looking at the numbers
At the time of writing, the price of Bitcoin was $26,700. Still, the MVRV ratio had seen a decline over the past month. The MVRV ratio compares Bitcoin’s market value to its realized value.
A lower MVRV ratio suggests that most addresses are not as profitable, potentially reducing the chance of a massive sell-off. This trend is essential to investigate as it signals shifts in holders’ sentiment and behavior.
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At the same time, the speed of the king coin has spiked in recent days. The speed of a cryptocurrency reflects its economic activity. A rapid increase in velocity can indicate higher liquidity, increased trading, or even speculative trading.
On the contrary, the Total Number of Holders also decreased during this period. A decreasing number of holders could be interpreted as a consolidation of ownership or a reduction in the number of new participants.
Source: Santiment