According to data compiled by The Block, the on-chain volume of Bitcoin (BTC) for January 2024 has reached its highest level since September 2022. In fact, the transaction volume produced was three times higher than that recorded in September 2023 when the price of the largest cryptocurrency began to rise.
Bitcoin On-Chain Transaction Volume Soars
Following a four-month increase in transaction volume, $1.21 trillion worth of Bitcoin was moved on-chain during January 2024. According to the latest data, this represents the highest amount of BTC moved on-chain since September 2022, when the Bitcoin price was around $20,000.
Excluding December, Bitcoin’s failure to surpass $1 trillion in volume every month of 2023 and its record low active supply indicated that investors were eagerly awaiting the approval of spot Bitcoin ETFs. With the SEC’s approval of the anticipated spot ETFs, transaction volume began to increase accordingly. Essentially, January was the fourth month to see an increase in volume following only $550 billion in September 2023.
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AAPLAccording to analysts at on-chain data platform Glassnode, long-term Bitcoin investors currently do not want to sell their BTC and seem to be calmly observing the sharp market movements. Moreover, the data shows that the monthly transaction volume on the Bitcoin network decreased between December 2023 and January 2024.
Analyst’s BTC Outlook
The largest cryptocurrency Bitcoin is trading at $42,716, a modest decrease of 0.41% in the last 24 hours. Popular crypto analyst Eric Krown Crypto pointed out the extremely low volatility and downward trend indicated by the stochastic momentum in the last five-day chart. The analyst expects a potential short-term rally to $44,000 or $45,000 before a more likely downward move, stating that $46,000 would be the confirmation level for an uptrend.
Krown expects Bitcoin to take a breather after this price movement and potentially drop to around $40,000 before rising again. Despite the short-term bullish expectation, the analyst cautions everyone to be careful, highlighting that the worst-case scenario target level could be $28,000.
