Bitcoin trading volumes in the U.S. surged to reach levels last seen in 2022.
- 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.
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.
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
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