- Spot trading volume reaches its highest level in several years as Bitcoin price soars
- New investors have entered the market again this year
Bitcoin’s [BTC] According to Glassnode, the price rally that began in October 2023 has pushed spot trading volumes to the highest levels seen during the 2020-2021 bull market. report.
According to the on-chain data provider, the coin’s daily spot trading volume currently stands at around $7 billion, although recent headwinds facing BTC prices have led to some declines.
Source: Glassnode
Glassnode evaluated a coin’s spot trading volume by comparing the indicator’s 180-day moving average (slower) to its 30-day moving average (faster). This comparison showed that “faster average trades have significantly outperformed slower average trades” in the BTC market since the market rally began in October 2023.
The on-chain data provider added that this shows the coin’s year-to-date growth is “supported by strong demand in the spot market.”
Furthermore, in addition to the surge in the coin’s spot trading volume, the rising price of BTC has increased the flow of coins into and out of crypto exchanges. Mr Glasnod said:
“The monthly average of total exchange flows (inflows and outflows) is now $8.19 billion per day, significantly higher than the peak of the 2020-2021 bull market.”
Rapid increase in new demand
The ongoing rally has also led to a surge in the number of new investors holding BTC. As long-term holders distribute their long-held coins for profit, the coins are being scooped up by new investors looking to profit from the market rally.
Glassnode evaluated BTC’s realized cap HODL wave and found that the “share of wealth held by coins less than 6 months old” is rising.
In fact, over the past year, the supply of BTC held by addresses less than six months old has increased significantly. At the time of writing, the similar figure was 47%.
Source: Glassnode
read bitcoin [BTC] Price prediction for 2024-2025
According to Glassnode,
“This suggests that the capital held within the Bitcoin holder base is roughly balanced between long-term holders and new demand.”
Finally, it is also worth pointing out that Glassnode argued that it is important to pay attention to the behavior of these new investors as their “share of capital increases.”
This is because this population of BTC holders is typically more price sensitive than long-term holders (LTH). They have easy access to their coins and are ready to offload once the price of BTC falls below their cost standard.
