No One Wants to Sell BTC, Analyst Claims as Bitcoin’s On-Chain Activity Struggles
The value of on-chain transfers on the Bitcoin blockchain is still far below its peak in 2021, according to data from Glassnode. This indicates that investors are holding onto their Bitcoin in the hopes of higher prices, as noted by analysts at Blockware Solutions. While Bitcoin recently reached new record highs above $70,000, the economic activity on the blockchain itself is experiencing a slowdown. This divergence is largely attributed to a strong holding sentiment in the market, according to Blockware Solutions. They stated in their newsletter, “Nobody wants to sell,” as the average on-chain transfer volume remains significantly lower than during the 2021 bull market. Glassnode defines transfer volume as the total value of BTC transferred on-chain in US dollars. Currently, the average mean transfer volume stands at less than $200,000, compared to over $1 million during the bull market. The recent surge in Bitcoin’s price is largely attributed to Wall Street’s acceptance of Nasdaq-listed spot Bitcoin ETFs, which has resulted in concentrated spot volume in those ETFs, thus explaining the low on-chain volume. Despite this, other metrics indicate that long-term investors who survived the 2022 bear market are holding onto their Bitcoin in anticipation of a further price rally. Analysts expect Bitcoin’s price to reach six figures in the coming months, with peaks possibly exceeding $150,000. Blockware analysts believe that once the price begins to surge, on-chain volume will increase as older coins are moved to exchanges for sale. Until then, the low on-chain volume reflects a lack of liquidity on the supply side. At present, Bitcoin is trading at $67,700, showing a 5% increase over the past 24 hours, while the CoinDesk 20 Index also saw a 5% rise.