Bitcoin briefly reached a local peak of $60,100 earlier today but has since stabilized around $58,894 as of Sunday. The leading cryptocurrency has experienced gains for three consecutive days, yet remains in a consolidation phase.
Trading volume for Bitcoin has decreased by 42%, now standing at approximately $14.7 billion. A decline in trading volume typically signals a cooldown period and reduced price volatility.
Data from Santiment reveals that Bitcoin’s five-year dormant circulation has dropped to 104 BTC, one of the lowest figures observed this year. This metric had surged to 16,592 BTC on July 23, when Bitcoin’s price was near $66,000. Additionally, the asset’s one-year dormant circulation has plummeted from 6,040 BTC on August 15 to 1,412 BTC.
Such a drop in dormant circulation suggests that long-term holders might be taking profits, often observed during high price levels. Currently, long-term Bitcoin addresses seem to be either capitalizing on gains or becoming inactive.
Santiment’s data also shows a consistent decline in whale transactions worth at least $100,000, falling from 9,295 on August 15 to 5,309 transactions. Reduced whale activity can lower an asset’s price volatility by minimizing the potential for price manipulation.
Furthermore, according to a report on August 17, spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded over $36 million in net inflows for the week. This influx contributed to the positive sentiment around Bitcoin, aiding its recovery above the $59,000 mark.
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