Bitcoin Transfer Volume Decline Signals Potential Issues
A recent Glassnode report highlights a decline in Bitcoin's transfer volume, signaling potential concerns for BTC.
The latest data from Glassnode indicates a recent drop in Bitcoin’s Entity-Adjusted Transfer Volume. This metric, which tracks Bitcoin transferred between different entities, has been showing reduced activity. The Entity-Adjusted Transfer Volume removes internal wallet transactions, providing a clearer picture of trading volume.
The report shows that the daily Entity-Adjusted Transfer Volume is around $6.2 billion. Despite this figure being substantial, the trend is worrying.
The 30-day moving average (MA) has fallen below the 365-day MA, indicating a downward trend.
READ MORE: Insane Bitcoin Price Prediction From MicroStrategy’s Michael Saylor
Earlier in the year, Bitcoin’s transaction volume surged, driven by increased interest and rising prices. However, recent stagnation in Bitcoin’s price might be contributing to decreased investor engagement, as suggested by the report.
Another related metric, the Combined Exchange Inflow/Outflow Volume, reflects similar trends, with its 30-day MA falling below the 365-day MA. This decline suggests reduced investor demand and lower trading activity in the current market conditions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
