THE BLOCK data shows that the on-chain transaction volume of Bitcoin has significantly increased, reaching $1.21 trillion in January, the highest record since September 2022. Glassnode analysis also indicates that most long-term holders have not chosen to sell Bitcoin and remain optimistic about the future.
According to the latest data from The Block, the on-chain transaction volume of Bitcoin has significantly increased recently. In January 2024, the on-chain transaction volume of Bitcoin reached $1.21 trillion, the highest record since September 2022, when the price of Bitcoin was only about $20,000.
On-chain transaction volume reached $1.2 trillion in January | Source: THE BLOCK
Glassnode: Long-term holders have confidence in BTC
Looking back at 2023, except for December, Bitcoin’s on-chain transaction volume has consistently failed to surpass the $1 trillion mark. On the other hand, according to analysts at Glassnode, the active supply of Bitcoin also hit a historical low in December last year, reflecting investors’ confidence in Bitcoin as they seem to be waiting for the approval of spot Bitcoin ETFs.
According to the latest weekly report by Glassnode, it appears that the volatility in the Bitcoin market has not shaken the beliefs of most hodlers. Long-term investors of Bitcoin seem to be uninterested in selling their holdings.
On the contrary, they are “calmly riding the market’s waves.” It is worth noting that in terms of absolute numbers, the majority of Bitcoin holders are still holding onto their investments. Although slightly lower than the historical peak value, the proportion of holdings across different age periods still demonstrates investors’ long-term confidence in Bitcoin.
Bitcoin supply | Source: Glassnode/Translated by DeepL
Bitcoin spot ETF trading volume approaches CEX
It is worth noting that Garry Thewise, the product manager of CryptoQuant’s on-chain data, also tweeted yesterday, indicating that compared to centralized exchanges, the trading volume of ETFs has accounted for a significant proportion. Once the ETF trading volume exceeds that of centralized exchanges, he stated that the impact of large institutions on the price of BTC will be even more significant than it is currently.
Data shows that the total trading volume of 9 Bitcoin spot ETFs, including ARKB, BITB, BRRR, BTCO, BTCW, EZBC, FBTC, GBTC, HODL, and IBIT, reached $1.018 billion on the 2nd. In comparison, the Bitcoin spot trading volume on centralized exchanges was $1.4 billion.
Comparison of centralized exchanges and Bitcoin spot ETF trading volume. Source: CryptoQuant
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