Bitcoin Trading Volume Continues To Rise
According to on-chain data, Bitcoin transfer volume has just hit levels 75% greater than the FTX collapse lows as it continues to rise.
The term “transfer volume” refers to the total amount of Bitcoin in USD involved in blockchain transactions. When the value of this measure is high, it indicates that holders are moving a large amount of coins around the network. In general, such a pattern indicates that traders are actively participating in the market.
According to Glassnode’s most recent weekly report, BTC transfer volume has grown to $4.2 billion per day.
The Bitcoin transfer volume indicator is “entity-adjusted,” focusing on the volume exchanged between different entities on the network, rather than individual addresses. An “entity” is a collection of addresses controlled by the same investor, and excluding personal wallet transfers from the volume is not relevant. The increase in transfer volume is a positive sign for BTC, indicating increased interest among investors. However, compared to the 2021 bull run, the current values of the indicator are significantly lower.
(With inputs from Shikha Singh)
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