Despite the growth in the price of BTC by 14% for the week and the temporary overcoming of the $ 50,000 mark, the volume of transactions on the network remains at a “historically low level”.
According to the latest report from Glassnode, despite the rise in Bitcoin in recent days, “transaction volumes are declining and the Bitcoin network processes around $ 18.8 billion in transactions on a daily basis.” At the same time, during the peak of the BTC price in May and the rally to $ 65,000, this figure was twice as high. Moreover, this week there was a noticeable surge in the volume of transactions among the “old” coins that were in wallets for at least five months – some of them were transferred, possibly for sale.
At first glance, it might seem that HODL users have decided to cash out their long-term investments. However, another indicator analyzed by Glassnode shows optimism among this group of investors. Despite the fact that sales of “old” coins have increased, the amount of BTC in wallets of long-term holders has increased.
Glassnode considers coins to be long-term investments that have not been spent within 155 days from the moment they appear in the user’s wallet. The number of such coins has grown to a record level of 12.7 million BTC (67% of coins in circulation, excluding irrecoverable losses).
The rise in the amount of BTC held by long-term investors suggests that supporters of the HODL strategy still believe in Bitcoin’s further growth. The slight increase in the number of transactions of “old” coins, according to analysts at Glassnode, suggests that investors decided to partially take profits when they got the chance.
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