- BTC on-chain volume rose to a new high.
- 97% of all trades executed that day exceeded $100,000.
Bitcoin [BTC] saw a surge in activity this week, with on-chain volume reaching its highest level since the FTX collapsed in November 2022.
In a post on . up to $60 billion.
Bitcoin’s on-chain volume reached its highest since the FTX collapse.
Bitcoin recorded a total volume of $60 billion on Wednesday, which was almost entirely driven by large transactions. 97% of the total volume, $58.76 billion, came from transactions over $100,000. pic.twitter.com/rMWh7zWMaS— IntoTheBlock (@intotheblock) January 12, 2024
IntoTheBlock further added that a whopping 97% of this volume, or $58.2 billion, came from transactions over $100,000.
The dominance of large trades indicates significant participation from large investors, who may be attracted to trading the asset because of the legitimacy the SEC-approved ETF gives it.
Where are American investors?
Interestingly, a regional assessment of where trading activity originated revealed a decline in institutional participation in the US since the advent of ETF approval.
AMBCrypto found that BTC’s Coinbase Premium Gap has decreased since January 8. This metric tracks the difference between the price of BTC on Coinbase and Binance.
When this indicator returns a positive value and rises, it means BTC is trading at a premium on Coinbase.
Conversely, this means that when the coin falls, it will trade at a much lower price on Coinbase than on Binance, mainly due to a shift in sentiment or buying pressure among US-based investors.
The decline comes after the measure rose in the first week of the year as the market anticipated the ETF’s approval.
BTC’s Coinbase Premium Gap stood at -9.7 at the time of writing and has fallen more than 170% in the past three days, according to data from CryptoQuant.
Source: CryptoQuant
Confirming the decline in US institutional investor participation since ETF approval, the coinbase Premium Index has also been on a downward trend in recent days.
With a negative reading of 0.002 at the time of writing, the measure suggested weak buying pressure in the US since ETF launch.
Source: CryptoQuant
As long as the euphoria lasts…
The ETF approval pushed BTC’s weighted sentiment to a multi-month high of 4.49 on January 10. However, positive sentiment is starting to wane now that the ETF hype is over.
At the time of writing, the coin was leaning south and the coin’s weighted sentiment was 0.523, ready to break the midline and enter negative territory, according to data from Santiment.
Source: Santiment
Read BTC price forecast for 2023-2024
Since the ETF led to a rise in the price of BTC, there has been a slight increase in profit-taking activity over the past two days. The market has since seen a rise in the number of coins being sent to crypto exchanges for further sale.
If sentiment declines further and the sell-off increases, the price of BTC may witness a pullback.
Source: Santiment