Recent data from Glassnode suggests that despite Bitcoin‘s record-breaking price surpassing $70,000, the pace of economic activity on its blockchain has noticeably slowed compared to the frenetic activity seen during the 2021 bull market.
The data indicates a prevailing sentiment among investors characterized by a strong inclination to hold onto their Bitcoin assets, seemingly awaiting further price escalation before considering any significant selling.
According to analysts at Blockware Solutions, the average U.S. dollar value of on-chain Bitcoin transfers remains notably subdued compared to the peak levels witnessed in 2021. Their latest newsletter underscores this observation, emphasizing the reluctance among holders to part with their assets at current price levels.
Glassnode’s metrics, tracking the dollar value of Bitcoin transferred on-chain, reveal that both the seven-day and 14-day average mean transfer volumes are presently below $200,000—a significant departure from the million-dollar-plus levels seen during the previous bull run. This decline in on-chain volume is attributed in part to the increasing prominence of Nasdaq-listed spot Bitcoin ETFs, which have redirected spot volume away from the blockchain.
Additional indicators further support the prevailing ‘hodl’ pattern among investors who endured the bear market of 2022. Notably, the percentage of Bitcoin supply last active between three and five years ago is on the rise. Several analysts foresee the potential for Bitcoin’s price to rally to six figures in the coming months, with some setting even higher targets exceeding the $150,000 threshold.
Blockware analysts predict that a surge in on-chain volume will likely coincide with a significant price movement, as older coins are anticipated to move to exchanges for selling. Until such a surge occurs, the current low on-chain volume is regarded as indicative of supply-side illiquidity.
At the time of reporting, Bitcoin was trading at $67,700, reflecting a 5% increase over the past 24 hours. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, also experienced a 5% uplift, signaling a cautiously optimistic sentiment prevailing across the sector.
