- Most investors moved coins from the market to HODL.
- The number of BTC coins on exchanges has fallen to the lowest level since January 2018.
The crypto market slump has brought back the spotlight on one of the most talked about topics in the world: Bitcoin’s [BTC] inconstancy.
How much are 1,10,100 BTC worth today?
According to data provider Kaiko, the 90-day annualized volatility for the world’s largest digital asset has dropped to 50%, almost halved from the highs seen during the 2021 bull market.
Volatility is perhaps the best indicator of lagging #crypto activity.
90D full front #BTC And #ETH is at multi-year lows, an almost identical trendline with trading volume. pic.twitter.com/CEBrGDTEcf
— Kaiko (@KaikoData) June 19, 2023
What appeared to be the start of another extended bull market phase in the first quarter of 2023 has been turned on its head. As revealed by Token Terminal, BTC monthly trading volume has been on a downward spiral since April.
Source: Token Terminal
The perceived value of Bitcoin
Bitcon’s declining volatility may be partly due to how investors are starting to see it. Glassnode’s Liveliness statistic, which shows how likely Bitcoin owners are to spend or keep their tokens, has been on a multi-year downward trend.
This suggested that most investors moved coins out of the market to HODL.
Source: Glassnode
This translated into the idea that the king coin was increasingly viewed as a long-term investment option, rather than a short-term speculative asset. In addition, recent actions by US-based regulators on major market participants have also contributed to HODLing sentiment.
As shown in the chart below, the number of BTC coins on exchanges has fallen to its lowest level since January 2018, about 2.28 million at the time of publication, indicating a lack of investor willingness to trade.
Source: Glassnode
In addition, there were signs that the Bitcoin market has matured and attracted the attention of leading financial institutions. Recently, the world’s largest asset manager, BlackRock, applied for a Bitcoin Exchange-Traded Fund (ETF) spot.
This move had the potential to make Bitcoin a legitimate asset class for investors with varying degrees of risk tolerance.
Is your wallet green? Check out the Bitcoin Profit Calculator
Speculative interest rates fall
Bitcoin’s Open Interest (OI), or the dollar value tied up in outstanding contracts on futures markets, plummeted to a new 1-month low, according to a June 19 tweet from Glassnode. The OI has been on a downward trend since early June.
BTC changed hands for $26,797 at the time of writing, following a 1.4% increase in value over the past 24 hours, data from CoinMarketCap showed.
📉 #Bitcoin $BTC Open interest in perpetual futures contracts just hit a 1-month low of $401,719,790 on #Debit
The previous 1-month low of $401,773,460 was observed on June 18, 2023
View statistics:https://t.co/SpnaOACZab pic.twitter.com/wZqjb8VVSf
— glassnode alerts (@glassnodealerts) June 19, 2023