Bitcoin | $188 billion has flowed through the network
Bitcoin | $188 billion has flowed through the network Bitcoin | $188 billion has flowed through the network

Bitcoin has crossed another milestone. The king of cryptocurrencies has seen exponential growth in the volume of BTC flowing through the network. The seven-day moving average of BTC volume on the network broke an all-time record. As reported by Glassnode, $188 billion was thus transferred through the network. This means that about 20% of Bitcoin’s market capitalization was transferred.

The number of coins transferred over the network for a seven-day moving average is – at current prices – about 3.6 million bitcoin. This figure takes into account both transactions whereby coins jump between wallets, as well as volume moving to and from exchanges. This clearly shows that BTC is not slowing down.

Bitcoin | Increasing Volume

As the historical data so far shows, the price of bitcoin has always risen along with the volume. The Glassnode chart compares the various times when the volume on the network has increased compared to the price at any given time. You can clearly see that the increase in volume has always coincided with an increase in price.

It is worth noting that while transaction volume is increasing, activity on the network is decreasing. This suggests that most of this volume comes from large moves from a small number of portfolios (as opposed to small moves from a large number of portfolios). The on-chain data also indicates that about 10,000 and 12,000 bitcoin were moved from one address to another in one go. This was most likely traffic from exchange wallets.

If this volume consisted of several small transactions it could mean that individual investors were actually moving their bitcoins online. The direction of these transactions would probably give a better indication of the current overall market sentiment. Either way, the increase in transaction volume tends to push the price upwards.

Will bitcoin attack the $50,000 level again?

Despite its current valuation at around $47,500 at the moment, BTC seems to be showing a readiness for another $50,000 retest. Exchange reserve levels continue to remain low, showing that investors are withdrawing their bitcoins from exchanges all the time instead of selling them. The current flow patterns of digital coins on the network still indicate that investors are keeping them off exchanges.

At the time of this writing, bitcoin is “struggling” at the $47,500 resistance level. Will the dimension of market momentum that we will see just at this level be a factor in the next breakout?

From the Editor

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