Bitcoin On-Chain Transactions at All-Time Low
Fresh data from Glassnode reveals that on-chain transactions on Bitcoin have reached an all-time low in the past three months. This suggests that holders are holding onto their Bitcoin and are not willing to sell.
95% of BTC Supply Unchanged
The data also shows that 95% of the circulating BTC supply has remained unchanged in the last month. This further confirms that holders are not interested in changing ownership, leading to a decrease in transaction levels.
Bitcoin Prices Stagnant
During this period of low transaction activity, Bitcoin prices have been moving sideways, remaining within the bullish range established in June and July 2023. Although prices briefly reached multi-month highs, they have since retraced and are currently below $30,000.
Importance of On-Chain Transactions
On-chain transactions provide important metrics for analysts to gauge interest and network utilization. More transactions typically indicate more user activity and value movement. However, an increase in transfers could also suggest holders’ eagerness to sell if prices are contracting.
Exclusions from Analysis
It’s worth noting that the analysis does not consider transactions executed via the Lightning Network or on centralized exchanges like Coinbase or Binance. While these transactions are significant, they are relatively lower than on-chain transactions.
HODLing and Price Support
The increase in HODLing may not only support Bitcoin prices but also demonstrate holders’ confidence in its long-term value as a store of value. It remains uncertain how many people will continue to hold Bitcoin after the halving of miner rewards, which will make the coin more deflationary.
Predictions for Bitcoin’s Future
Many traders are bullish on Bitcoin, expecting it to bounce higher and potentially reach new highs above $32,000. This rally could occur if the United States Securities and Exchange Commission approves the first spot of Bitcoin Exchange-Traded Funds (ETFs) and the network halves miner rewards in 2024.
Hot Take: Bitcoin Holders Resistant to Selling as On-Chain Transactions Decrease
Fresh data from Glassnode shows that on-chain transactions on Bitcoin have reached an all-time low in the past three months, indicating that holders are reluctant to sell and more inclined to HODL. This is further supported by the fact that 95% of the circulating BTC supply has remained unchanged in the last month. Although Bitcoin prices have been stagnant, there is still optimism among traders who predict a potential break to new highs above $32,000. The increase in HODLing suggests that holders have confidence in Bitcoin’s long-term value.
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