In January 2024, Bitcoin’s on-chain volume reached a six-month high, according to data from The Block.
The reported number of transactions on the blockchain tripled compared to September 2023, totalling a record $1.21 trillion worth of Bitcoin moved on-chain. This spike follows the comparatively lower volume of $550 billion in September 2023.
The approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) in January likely played a role in the substantial increase in transaction volume. The spot Bitcoin ETF providers entered a race to increase the assets backing their funds to almost 99% Bitcoin. Blackrock was the first to achieve this, and Fidelity followed two days later.
Despite the overall surge in transaction volume, Analysts at Glassnode say that long-term Bitcoin investors appear to be unconcerned about the recent market volatility, with little evidence of panic selling. Bitcoin failed to achieve $1 trillion in monthly volume in December 2023, indicating that investors were cautiously awaiting the SEC’s approval of spot Bitcoin ETFs.
Meanwhile, popular crypto analyst and YouTuber Eric Krown Crypto has noted the low volatility and downward trend of Bitcoin prices, which he thinks has had a stochastic momentum in the last five days, and projected a short-term price rally to $44,000 or $45,000. Still, a downward move to lower prices is more likely. Krown points out that $46,000 would be the confirmation level for an upward trend, but the price may retrace below the key support levels before any such rally.
Krown believes that a short-term rally may be followed by a correction to around $40,000 before the price can resume its upward movement. Despite the short-term bullish outlook, the analyst cautions that a worst-case scenario could see the price of Bitcoin fall to $28,000. Krown recommends caution, especially for short-term traders, because of the high level of uncertainty in the market.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
