Amid Bitcoin (BTC)'s recent surge above $70,000 to hit unprecedented levels, analysts are voicing their thoughts on lackluster activity on-chain, indicating a notable reluctance on the part of investors to part ways with their holdings.
No One Wants to Sell BTC as Bitcoin's On-Chain Activity Declines, Analysts Say
Despite Bitcoin's rising price, real economic activity on the blockchain is showing signs of stagnation, indicating a reluctance to make a significant sell-off, according to experts.
Blockware Solutions, a research firm, highlighted this trend in its latest Blockware Intelligence newsletter.
Experts pointed out that the average on-chain transfer volume in USD was significantly below the peak witnessed during the 2021 bull market, indicating a lack of value movement on the chain. “No one wants to sell,” they emphasized.
Glassnode, a data tracking firm, defines transfer volume as the US dollar value of the total BTC transferred on-chain, taking only successful transfers into account.
Currently, both seven-day and 14-day average transfer volumes remain below $200,000, a stark contrast to the $1 million-plus highs seen during the 2021 bull market frenzy.
The recent rally in Bitcoin's price has been attributed primarily to Wall Street's adoption of spot Bitcoin ETFs listed on Nasdaq.
As a result, most of the trading volume was concentrated in these ETFs, contributing to the stagnation of on-chain activity.
However, analysts also point to other metrics that show a strong sense of holding among investors weathering the storm of the 2022 bear market.
The percentage of Bitcoin supply that has been inactive for three to five years continues to rise, indicating a belief among holders that the price rally is far from over.
*This is not investment advice.