- Data showed seven-day trading volume fell below $14 billion.
- The price of BTC continued to rise while profitability grew.
Like Bitcoin[BTC] approaching its all-time high, anticipation and FUD surrounding the King Coin have also skyrocketed. Despite rising optimism and interest in Bitcoin, trading volume around BTC has declined.
Bitcoin volumes are declining
Data showed that seven-day trading volume fell below $14 billion, reaching the same level as in 2023, when Bitcoin traded below $30,000.
This could be a worrying indicator and indicate that the market has cooled. On the other hand, it can also be seen as a positive, as more and more addresses choose to keep their BTC.
Source: Santiment
At the time of writing, BTC was trading at $68,899.70 and the price is up 2.14% in the last 24 hours. The MVRV ratio for Bitcoin soared, implying that most holders have become profitable in recent days.
Due to the surge in profitability, more holders might be tempted to sell BTC and reduce its price.
However, the Long/Short difference for BTC had also increased during this period. This implied that the number of long-term holders of BTC has increased significantly in recent days.
Long-term holders are less likely to sell their holdings and much more likely to exhibit a calmer temperament during significant price swings.
Source: Santiment
Another indicator of interest in Bitcoin is the number of active addresses on the network. AMBCrypto’s examination of Santiment’s data found that the number of daily addresses on the Bitcoin network has dropped significantly in recent weeks.
Source: Santiment
One of the reasons for this could be the state of the NFT sector. In recent weeks, NFT sales, buyers and sellers have fallen.
Sales volume for Crypto Slam has dropped by 75.36% in recent days. Coupled with this, the total number of NFT transactions on the network also fell by 60%.
Source: Crypto Slam
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If activity on the network continues to decline, miners’ revenues could be negatively affected.
In the recent past, the daily revenue generated by Bitcoin miners had dropped significantly in the past few days. If this continues, miners would have to sell their assets for profit, putting downward pressure on BTC.
Source: Blockchain