Exploring Bitcoin’s Total Transfer Volume Trends
Have you ever wondered about the total transfer volume of Bitcoin during different bull runs? Let’s dive into the data provided by CryptoQuant author Axel Adler Jr and explore how the total transfer volume in the current bull run compares to previous ones.
Overview of Total Transfer Volume
The total transfer volume refers to the amount of Bitcoin involved in transactions on the network daily, measured in USD. Here’s a breakdown of the key findings:
– The total transfer volume is on an upward trend in recent months
– Bull markets see increased network activity due to new users and existing holders adjusting their positions
– Bear markets experience lower transfer volumes as investors shy away from the cryptocurrency
Comparison with Previous Bull Runs
Let’s compare the total transfer volume during the 2017 and 2021 bull runs:
– In 2017, the peak total transfer volume was around $740 billion
– The current bull run has seen a peak of just $118 billion in total transfer volume
– Despite similar price levels, the demand for trading during the current bull run is significantly lower
Spot ETFs Influence on Transfer Volume
One possible reason for the discrepancy in transfer volume could be the introduction of Bitcoin spot exchange-traded funds (ETFs) in the current bull run:
– Spot ETFs attract traditional investors by offering indirect exposure to Bitcoin
– These new investors are not actively participating in on-chain transactions like traditional holders
– The off-chain nature of spot ETFs may be contributing to the lower transfer volume in the current bull run
Bitcoin Price Movement
Bitcoin’s price recently hit a high above $69,000 before retracing to around $66,600. Here’s a snapshot of the recent price movement:
– Briefly touched $69,000 before dropping back to $66,600
– Price volatility continues as the market reacts to various factors
– Investors are closely monitoring price levels for potential entry or exit points
Hot Take: Analyzing Bitcoin’s Transfer Volume Trends
On-chain data shows the Bitcoin transfer volume remains significantly lower than that observed at comparable prices during the 2021 bull run peak.
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