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These Critical Metrics in Bitcoin Ensure Investors Don’t Lose Hope

  • Since January 2023, the transaction volume structure of BTC has undergone significant changes. These changes indicate the possibility of volatility in the cryptocurrency market in a new era and potentially affecting investors.
  • The volume ratio between Spot and Derivatives has decreased from 35% to 6%, indicating that only 6% of the total BTC transaction volume is in the spot market.
  • The total weekly transaction volume of BTC on all exchanges dropped from 2.5 million BTC in March to below 600,000 BTC in July. This more than 75% decrease during the specified period was a surprising decline.

Bitcoin price has continued its downward trend recently, but there are some important data that keep investors hopeful…

What Has Changed in the Bitcoin Market Recently?

Bitcoin BTC

Bitcoin has maintained a relatively stable trading range between $29,000 and $31,000 for a long time. The price has experienced some fluctuations and uncertainties, but the emerging data indicate that this stable period could be a transition period towards a more dynamic and active market.

According to CryptoQuant analysts, since January 2023, the transaction volume structure of BTC has undergone significant changes. These changes indicate the possibility of volatility in the cryptocurrency market in a new era and potentially affecting investors.

Furthermore, the volume ratio between Spot and Derivatives has decreased from 35% to 6%, indicating that only 6% of the total BTC transaction volume is in the spot market. This shows that investors are reluctant to sell their BTC.

bitcoin-trading-volume-analytics

Most BTC investors generally prefer to hold their tokens for the long term, as indicated by the data shown in the Binary CDD chart. This chart shows that there has been no active selling among Long-Term Holders (LTH) since the beginning of the year.

bitcoin-binary-cdd

Additionally, the total weekly transaction volume of BTC on all exchanges dropped from 2.5 million BTC in March to below 600,000 BTC in July. This more than 75% decrease during the specified period was a surprising decline.

If this trend continues, it could lead to significant changes in the Bitcoin market and offer new dynamics and opportunities for investors and traders.

Traders Continue to Remain Hopeful

Despite the uncertainties brought by these factors, traders have largely remained optimistic about Bitcoin. In the past few weeks, there has been a significant decrease in the put-call ratio for Bitcoin.

This significant decrease indicates that these traders expect the price of BTC to rise, as the number of put positions significantly exceeds the number of call options on exchanges.

bitcoin-put-call

The positive movement of BTC is not only expected by traders but also by BTC holders, as indicated by Santiment’s data. The following graph shows a significant decrease in BTC’s MVRV ratio, indicating a decrease in profitability for many holders who accumulate Bitcoin.

At the time of writing this article, the price of BTC was at $28,940 and had experienced a decline in the past few days.

bitcoin-mvrv-ratio

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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