- Despite Grayscale’s ETF developments, Bitcoin’s price stagnated, causing concern.
- Whale accumulation and aged Bitcoin movements indicated potential market shifts.
Despite Grayscale’s ETF moving closer to seeing the green light, the price of Bitcoin [BTC] remained stagnant. This event made many traders pessimistic about whether Bitcoin will see growth in the future.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Whales move in
However, according to Santiment, whale accumulation was on the rise. Notably, sixteen more wallets held between 100-1K BTC. As key stakeholders grew, the argument for a bullish future got stronger.
Source: Santiment
Meanwhile, there was a notable movement of older BTC. More than 16,000 Bitcoins aged between two and five years have recently been moved. Transactions of this magnitude and age are relatively rare in the Bitcoin network, and this occurrence has garnered considerable attention.
🚨 JUST NOW: Notable Transactions on the Bitcoin Blockchain
More than 16,000 bitcoin aged between 2 to 5 years have just been moved on the blockchain. Transactions of this magnitude and age are relatively rare 👀https://t.co/zoUGtz05V8 pic.twitter.com/757nEk3Qxn
— Maartunn (@JA_Maartun) October 14, 2023
Transaction volume on the Bitcoin network also saw a significant increase. Recently, Glassnode’s data reported that the median transaction volume over a 7-day moving average reached a five-month high at $324.79.
This uptick in activity reflected an increasing number of transactions on the Bitcoin blockchain, which could have diverse effects on the market.
Higher transaction volume could indicate growing adoption and usage of Bitcoin, but might also result in increased network congestion.
📈 #Bitcoin $BTC Median Transaction Volume (7d MA) just reached a 5-month high of $324.79
Previous 5-month high of $322.80 was observed on 05 October 2023
View metric:https://t.co/Oqu9AN81mM pic.twitter.com/nS7KFyOwsJ
— glassnode alerts (@glassnodealerts) October 6, 2023
Looking at the numbers
At the time of writing, Bitcoin’s price was $26,700. Yet, the MVRV Ratio had undergone a decline over the past month. The MVRV Ratio compares the market value of Bitcoin to its realized value.
A lower MVRV Ratio suggests that most addresses are not as profitable, potentially reducing the chance of a mass sell-off. This trend is essential to explore as it signals shifts in sentiment and holder behavior.
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Simultaneously, the king coin’s velocity spiked over the last few days. The velocity of a cryptocurrency reflects its economic activity. A rapid increase in velocity may indicate higher liquidity, increased trading, or even speculative trading.
On the contrary, the Total Amount of Holders fell during this period as well. A decreasing number of holders could be interpreted as a consolidation of ownership or a reduction in new participants.
Source: Santiment