- Bitcoin’s estimated combined exchange/inflow volume passed $4 billion (30D SMA).
- Whales and miners helped increase exchange interaction.
Bitcoin has seen a dramatic spike in recent weeks [BTC] exchange interaction.
Bitcoin’s movement on the stock exchanges is taking a leap
According to on-chain analytics firm Glassnode, Bitcoin’s combined exchange/inflow volume, assessed on a 30-day simple moving average (SMA), topped $4 billion at the time of writing.
Interestingly, only 183 days in Bitcoin’s trading history have seen greater exchange volume, Glassnode added.
Source: Glassnode
The last time deposit and withdrawal volume crossed the $4 billion mark, Bitcoin hit its all-time high (ATH) of $69,000 in November 2021.
The past few months also appeared to have put a brake on the downward trend in Bitcoin exchange offerings, AMBCrypto analyzed using Glassnode data.
Notice how the graph started moving sideways since early October. This was the time since Bitcoin started a rally, fueled by optimism over the now approved spot ETFs.
As of this publication, the percentage supply of Bitcoin on the exchanges remained over 12%.
Source: Glassnode
Whales increase participation
Notably, in anticipation of spot ETFs, Bitcoin whales also sprang into action. According to AMBCrypto’s analysis of CryptoQuant, whale inflows to exchanges increased significantly in the last week of December.
In the bull market the ratio often remains below 85%. On the other hand, in the bear market it usually stays above 85%.
At the time of writing, the indicator was comfortably at 32%, implying that there is no immediate danger of a major sell-off.
Source: CryptoQuant
Miners come in
Another key user cohort that increased interaction with exchanges was Bitcoin miners.
Miners have been transferring more Bitcoin to exchanges for liquidation since the last week of December and have continued into the new year. Such levels have not been observed since July 2023.
The gains that Bitcoin accumulated in the last quarter of 2023 may have likely prompted miners to cash out.
As is well known, miners need cash to finance their mining expenses. They are waiting for a meaningful increase in the price of Bitcoin to sell them.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price forecast 2023-24
At the time of writing, the king coin was in the $42,000 zone, having lost 8.86% of its value over the past week.
However, market participants were hopeful that capital inflows following the adoption of spot ETFs would eventually push up prices.