THE BLOCK data shows that the on-chain transaction volume of Bitcoin has significantly increased, reaching $1.21 trillion in January, the highest record since September 2022. Glassnode analysis also indicates that most long-term holders have not chosen to sell Bitcoin and remain optimistic about the future.
(Wall Street Journal: Zuckerberg will soon open up FB, IG to advertise Bitcoin ETF)
(Glassnode On-chain Weekly Report: GBTC continues to sell pressure on Bitcoin, but capital inflows are accelerating)
According to the latest data from The Block, the on-chain transaction volume of Bitcoin has significantly increased recently. In January 2024, the on-chain transaction volume of Bitcoin reached $1.21 trillion, the highest record since September 2022, when the price of Bitcoin was only about $20,000.
January on-chain transaction volume reaches $1.2 trillion | Source: THE BLOCK
Glassnode: Long-term holders have confidence in BTC
Looking back at 2023, except for December, the on-chain transaction volume of Bitcoin has always failed to break through the $1 trillion mark. On the other hand, according to analysts from Glassnode, the active supply of Bitcoin also hit a historic low in December last year, reflecting investors’ confidence in Bitcoin. They seem to be waiting for the approval of physically-backed Bitcoin ETFs.
According to the latest weekly report by Glassnode, it appears that the volatility in the Bitcoin market has not shaken the beliefs of most hodlers. Long-term Bitcoin investors do not seem to be eager to sell their holdings. On the contrary, they are “calmly riding the market’s volatility.” Worth noting is that in terms of absolute numbers, the majority of Bitcoin holders still stick to their investments. Although slightly lower than the historical peak, the proportion of holdings across different age ranges still shows investors’ long-term confidence in Bitcoin.
Bitcoin supply | Source: Glassnode/Compiled by DeepChain
Bitcoin spot ETF trading volume approaches CEX
It is worth noting that Garry Thewise, the head of CryptoQuant’s on-chain data product, also tweeted yesterday, pointing out that compared to centralized exchanges, ETF trading volume has accounted for a considerable proportion. Once ETF trading volume surpasses that of centralized exchanges, he stated that the impact of large institutions on the BTC price will be even more significant than it is now.
Data shows that the total trading volume of 9 Bitcoin spot ETFs, including ARKB, BITB, BRRR, BTCO, BTCW, EZBC, FBTC, GBTC, HODL, and IBIT, reached $1.018 billion on the 2nd. In comparison, the Bitcoin spot trading volume of centralized exchanges was $1.4 billion.
Comparison of centralized exchanges with Bitcoin spot ETF trading volume. Source: CryptoQuant
Related Reports
Coin Market Morning Post: BlackRock’s spot ETF “IBIT” daily trading volume surpasses GBTC, Bitcoin climbs to $43,400
Will the largest U.S. “JPMorgan” launch a Bitcoin spot ETF? With 30 million users and managing $7 trillion