Bitcoin's Trading Volume Returns to 2022 Levels
By TH3FUS3 Editorial Staff
May 24, 2024 09:09 AM
Reading time: 1 minute, 39 seconds
TL;DR Bitcoin [BTC] witnessed a massive surge in price, leading to increased optimism and trading volume. U.S. trading hours saw a return to 2022 volume levels, while APAC hours lagged. Notably, a 10-year-old BTC transaction was recorded, signaling significant on-chain movement.
Bitcoin [BTC] has shown a price upswing over the last few days, causing optimism to spike during this period. Due to this price movement, BTC's trading volume has also increased significantly. According to Coinmarketcap, it has increased by about 40% in the last 24 hours.
U.S. Trading Hours Show Increased Volume
According to new data, BTC trade volume during U.S. hours had returned to 2022 levels. The high volume of BTC transactions in the United States indicates that its market is showing massive interest in BTC and may even reach saturation.
However, it wasn't the case on the APAC (Asia Pacific) front. The volume during APAC trading hours was significantly lower. This meant that a large cohort of people still had not interacted with BTC.
As BTC's popularity grows, traders operating during APAC hours may soon invest in and trade BTC, which could drive the price of BTC to new heights.
Whale Movements and Market Impact
As BTC began to reach its previously established all-time highs, many old holders were observed to be moving their holdings.
Recently, an on-chain movement of over 10-year-old Bitcoin was recorded. A transaction involving 2,000 BTC was sent in block 844625, marking a significant shift in long-held assets.
This whale behavior could raise FUD (Fear, Uncertainty, and Doubt) among holders and traders, negatively impacting BTC's price.
Current Market Status
At press time, BTC was trading at $69,750.53, and its price had grown by 0.04% in the last 24 hours. Moreover, the velocity of its trade had grown, implying that its frequency of trading had also increased.
Profitability and Market Dynamics
In addition, the MVRV ratio for BTC had also significantly grown, implying that most addresses were profitable at the time of writing. Although this is positive for the holders, it could mean trouble for BTC's price.
As profitability rises, so does the incentive to sell. BTC's price can be negatively impacted if holders begin to indulge in profit-taking. The long/short ratio can determine the likelihood of an address selling its BTC.
