Crypto data platform Glassnode‘s tracked data reveals that the average on-chain transfers in Bitcoin‘s (BTC) Blockchain in terms of US dollar value remain significantly below the peak seen in 2021. According to analysts, this trend could be interpreted as a sign that investors prefer to hold their BTC without selling in anticipation of higher prices, indicating a strong HODL trend in the market.
Investors Avoid Selling BTC
Bitcoin has reached new record levels by surging above 70 thousand dollars, hitting an all-time high (ATH) of 73,750 dollars, yet the real economic activity on the largest cryptocurrency’s Blockchain is sluggish, indicating that investor expectations are quite high.
According to analysts at Blockware Solutions, the current disparity between Bitcoin’s price rally and on-chain transfer volume shows a prevailing reluctance to sell among investors. Recent data indicates that the average on-chain transfer volume in US dollars is significantly lower than the levels observed during the 2021 bull market peak. The data shows that the 7-day and 14-day average transfer volumes are currently below 200 thousand dollars, compared to volumes over 1 million dollars seen during the previous bull market.
Analysts relate the current uptrend in Bitcoin’s price primarily to Wall Street’s interest in spot Bitcoin ETFs listed on Nasdaq, concentration of spot volume in ETFs, and relatively low on-chain volume. Nevertheless, various data reveal that investors who endured the pain of the 2022 bear market are holding onto their BTCs without selling, in anticipation of further price increases.
Analysts at Blockware Solutions predict that when there is a significant movement in Bitcoin’s price, the on-chain volume will increase and old BTCs will be moved to exchanges for sale. Until then, the low on-chain volume is interpreted as a sign of a lack of supply-side liquidity and reinforces the narrative that investors are reluctant to sell.
Long-Term Investors Continue to Accumulate BTC
In particular, the percentage of Bitcoin supply that was last active 3 to 4 years ago continues to increase. This trend indicates a strong belief among long-term investors. The main driving force behind this trend is many analysts’ forecasts that the price of the largest cryptocurrency will rise to six figures in the coming months and exceed 150 thousand dollars in the long term.
According to CoinMarketCap data, Bitcoin is trading at 67,260 dollars with a market value of 1.32 trillion dollars, marking a 3.57% increase in the last 24 hours.
