search
Homeweb3.0Bitcoin (BTC) Transfer Volume Has Been Losing Momentum, A Sign That May Not Be Positive

A report from Glassnode has revealed that the Bitcoin transfer volume has been losing momentum recently, a sign that may not be positive for BTC.

Bitcoin (BTC) Transfer Volume Has Been Losing Momentum, A Sign That May Not Be Positive

A recent report from Glassnode has shown that the Bitcoin transfer volume has been losing momentum, which could be a negative sign for BTC. Both the Entity-Adjusted Transfer Volume and the Combined Exchange Inflow/Outflow Volume have seen a decline.

Bitcoin Transaction Volume & Exchange Volume Are Both Down

In the latest weekly report from Glassnode, the Entity-Adjusted Transfer Volume has taken a hit recently. The “Transfer Volume” is a metric that tracks the total amount of Bitcoin volume getting involved in blockchain transactions.

The Entity-Adjusted version of this indicator filters the total volume to only represent the transfers between different entities. An “entity” here refers to a cluster of addresses that Glassnode has determined to belong to the same investor through its analysis.

Transactions between the wallets of the same holder aren’t relevant to the greater market, so the Entity-Adjusted version, which filters out such transfers, can represent the true volume getting involved in trading.

Below is the chart cited by the analytics firm in the report, which shows the trend in the Entity-Adjusted Volume and its 30-day and 365-day moving averages (MAs) over the past few years.

As can be seen in the graph, the Bitcoin Entity-Adjusted Transfer Volume currently has a value of around $6.2 billion daily. This isn’t a low value, but what may be worth noting is the trajectory that the indicator has been following recently.

From the 30-day MA, it’s visible that the network volume has been dropping for a while now, with it even just falling below the 365-day MA recently. “Generally speaking, this is a net negative observation,” Glassnode notes.

Earlier in the year, the monthly average volume had gained a large distance over the yearly average, caused by the spike in interest surrounding the cryptocurrency as its price had marched on to a new all-time high (ATH).

The decline in the volume that has followed since then may be due to the lackluster price action that Bitcoin has been showing, as investors tend to find such periods boring.

This boredom is also visible through another indicator related to BTC trading: the Combined Exchange Inflow/Outflow Volume. As its name implies, this metric measures the total amount of Bitcoin flowing in and out of the wallets associated with centralized exchanges.

The graph shows that Bitcoin’s combined exchange inflow/outflow volume has recently seen a similar trend to the transfer volume. The crossover is even at a more advanced stage in the case of this metric, with the 30-day MA now being well below the 365-day MA.

“This underscores a decline in investor demand and less trading by speculators within the current price range,” reads the report.

BTC Price

Bitcoin had seen a plunge towards $55,500 earlier in the day, but the decline was only short-lived as the coin has bounced back to $56,700.

The above is the detailed content of Bitcoin (BTC) Transfer Volume Has Been Losing Momentum, A Sign That May Not Be Positive. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Senators Lummis and Scott Promise Pro-Bitcoin Legislation if Republicans Win the Majority in the Upcoming ElectionsSenators Lummis and Scott Promise Pro-Bitcoin Legislation if Republicans Win the Majority in the Upcoming ElectionsJul 27, 2024 pm 12:58 PM

Senator Cynthia Lummis took the stage to speak at the Bitcoin 2024 conference along with Senator Tim Scott, on Friday, discussing cryptocurrency and their vision for its role in the U.S. financial system.

Bitcoin (BTC) Exchange Netflow Has Just Taken to Positive Values, Here's What It MeansBitcoin (BTC) Exchange Netflow Has Just Taken to Positive Values, Here's What It MeansJul 27, 2024 am 12:07 AM

On-chain data shows the Binance exchange has received large net Bitcoin inflows during the past day, indicating that BTC's decline may extend further.

Hackers recover $3 million in bitcoin from software wallet locked for over a decadeHackers recover $3 million in bitcoin from software wallet locked for over a decadeJun 14, 2024 am 09:57 AM

JoeGrand-anethicalhackerandYouTuberwhoiswidelyknownforhisprojectsinvolvingcryptowallets,hassuccessfullyrecoveredalife-changingamountofbitcoin,presentlyvaluednorthof$3millionfromasoftwarewalletthathasbeenlockedformo

Bitcoin (BTC) – America’s Key To Economic Supremacy?Bitcoin (BTC) – America’s Key To Economic Supremacy?Jul 26, 2024 pm 09:15 PM

In the ongoing global economic and geopolitical rivalry, the United States may have a powerful new weapon – Bitcoin (BTC). That is the argument made by Sam Lyman

US Stock Market Peak Warning May Also Impact Bitcoin (BTC) MarketUS Stock Market Peak Warning May Also Impact Bitcoin (BTC) MarketJul 27, 2024 am 06:35 AM

Financial experts are warning of an impending peak in US stocks. This may also lead Bitcoin to rise. According to Arthur Budaghyan, an analyst at BCA Research, the US stock market

Bitcoin Holders Can Now Purchase European Union Citizenship, Combining Cryptocurrency and Immigration PolicyBitcoin Holders Can Now Purchase European Union Citizenship, Combining Cryptocurrency and Immigration PolicyJul 25, 2024 pm 02:53 PM

Powered by the Unbound Fund, this initiative uses Bitcoin as a key to open up Portuguese citizenship via the country's golden visa program.

Bitcoin vs. Gold vs. S&P 500: Which Is the Best Investment in the Current Market?Bitcoin vs. Gold vs. S&P 500: Which Is the Best Investment in the Current Market?Jul 27, 2024 am 07:11 AM

Cryptocurrencies, commodities, and stocks are among the most popular risk assets for investment and trade, also leading finance indicators.

Bitcoin (BTC) Witnesses “Rare” Buy Signal, Could Enjoy a Massive Rally to $130,000Bitcoin (BTC) Witnesses “Rare” Buy Signal, Could Enjoy a Massive Rally to $130,000Jul 26, 2024 am 11:26 AM

Crypto analyst Mikybull Crypto has revealed the return of a technical indicator that represents a buy signal for Bitcoin. Based on his predictions, the

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

AI Hentai Generator

AI Hentai Generator

Generate AI Hentai for free.

Hot Article

R.E.P.O. Energy Crystals Explained and What They Do (Yellow Crystal)
2 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
Repo: How To Revive Teammates
1 months agoBy尊渡假赌尊渡假赌尊渡假赌
Hello Kitty Island Adventure: How To Get Giant Seeds
1 months agoBy尊渡假赌尊渡假赌尊渡假赌

Hot Tools

WebStorm Mac version

WebStorm Mac version

Useful JavaScript development tools

ZendStudio 13.5.1 Mac

ZendStudio 13.5.1 Mac

Powerful PHP integrated development environment

Dreamweaver CS6

Dreamweaver CS6

Visual web development tools

VSCode Windows 64-bit Download

VSCode Windows 64-bit Download

A free and powerful IDE editor launched by Microsoft

SublimeText3 English version

SublimeText3 English version

Recommended: Win version, supports code prompts!