- There has been a decrease in the number of active BTC addresses since the ETFs went live.
- However, the number of BTC token transfers has increased, indicating strong institutional interest.
The amount of Bitcoin [BTC] token transfers have continued to rise despite the leading coin’s poor price performance since the US SEC approved all spot ETF applications on January 10.
In a new reportCryptoQuant analyst Yonsei Dent found that BTC’s price performance following ETF approval has led to a decline in the number of active addresses participating in transactions involving the crypto asset.
According to data from CryptoQuantSince January 10, the daily number of unique active addresses involved in BTC transactions, either as senders or recipients, has fallen by 13%.
Source: CryptoQuant1
Dent opined that this drop in BTC’s network activity “should not necessarily be seen as a negative signal” as the coin continues to witness high token transfers.
Dent said:
“This substantial increase in the number of tokens transferred per address can be seen as evidence of the presence of significant institutional capital and other large investors entering the market in response to the ETF approval issue.”
Source: CryptoQuant
BTC Spot ETF in the past week
AMBCrypto found that the last trading week ended with spot BTC ETF volume of $1 billion, according to data from The Block dashboard. During the five-day trading period, volume fell 37%.
Furthermore, the closing volume was the lowest the BTC ETF market has ever closed since its launch in early January.
Source: Het Blok
At the time of writing, the Grayscale Bitcoin Trust (GBTC) held a 38% share of the entire BTC spot ETF market, according to data from The Block. At the same time, GBTC’s assets under management (AUM) totaled $21 billion.
Source: Het Blok
Sentiment seems to be improving
A review of BTC’s price movements on a daily chart revealed a gradual shift in market sentiment from bearish to bullish.
A key indicator of this shift was the coin’s Moving Average Convergence Divergence (MACD) indicator.
On January 28, the MACD line (blue) crossed the trend line (orange) and was about to rise above the zero line at the time of writing.
These types of intersections signal the start of a new bull cycle, caused by a gradual revival in demand for an asset.
Read Bitcoin’s [BTC] Price forecast 2024-25
Likewise, key momentum indicators were noticed in uptrend positions. BTC’s Relative Strength Index (RSI) was 52.78, while the Money Flow Index (MFI) returned a reading of 50.72.
Source: TradingView
The values and positions of these indicators showed that buying pressure was starting to outweigh the coin sell-off.