Journalist
Posted:
- Bitcoin faced declining trading volumes due to a price correction and delays in ETF approvals.
- Whales continued to accumulate Bitcoin, which was a sign of long-term confidence.
In recent days Bitcoin [BTC] The once vibrant price momentum hit a roadblock after surging past the $25,000 mark. At the same time, the king coin’s trading volume, a crucial measure for evaluating market activity, declined.
Read Bitcoin’s [BTC] Price forecast 2023-2024
Volumes are falling
According to Santiment data, Bitcoin witnessed the lowest trading volume in terms of dollar value since March 2019. This decline correlated with a decrease in the supply of Bitcoin available on exchanges, an event that occurred almost three years ago.
Reduced trading volume can lead to increased price volatility, making Bitcoin more sensitive to rapid price fluctuations.
Source: Santiment
Additionally, the expected approval of Bitcoin Exchange-Traded Funds (ETFs) was delayed. The US Securities and Exchange Commission (SEC) has postponed its decision on the proposed ARK 21Shares Bitcoin ETF until next year and set a new deadline for January 10.
A similar delay was applied to the proposed Global These delays indicated possible delays for other applications seeking approval for spot Bitcoin funds.
The setback in ETF approvals could impact Bitcoin’s overall market sentiment. Approval of these ETFs would have been a major milestone for Bitcoin, potentially attracting more institutional investment and mainstream adoption.
However, the delays create uncertainty about the timeline for such developments.
State of Investors
Despite these challenges, data from Glassnode revealed that whales were accumulating Bitcoin. The number of addresses holding 10 or more Bitcoins recently reached an all-time high of 157,629.
This accumulation trend suggests that major investors and institutions are confident in Bitcoin’s long-term potential, even despite the near-term uncertainties.
Interestingly, these increasing numbers of speeches showed remarkable patience. Glassnode’s data also showed that the amount of HODLed or lost Bitcoin reached a five-year high at 7,893,256,940 BTC at the time of writing.
This metric underscored the growing conviction among Bitcoin holders as more and more coins are locked up, reducing the supply available for trading.
Source: Glassnode
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However, Bitcoin’s recent price performance told a different story. At the time of writing, Bitcoin was trading at $26,275 after experiencing a decline in recent days. Moreover, the number of daily active addresses on the Bitcoin network also decreased during this period.
These declines in both price and network activity raise concerns about near-term market sentiment. The reduced number of daily active addresses may indicate a lower level of user engagement with Bitcoin, which could potentially contribute to the ongoing price correction.
Source: Santiment