Bitcoin Transaction Volume on Exchanges Hits $1.14B amid Market Turbulence

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As an analyst with over a decade of experience in the financial markets, I’ve seen many bull and bear cycles come and go. The recent surge in Bitcoin transactions on centralized exchanges is reminiscent of the 2017 bull run, although it seems the market has learned from its past mistakes.

As a seasoned crypto investor, I’ve noticed an interesting development amidst the recent market volatility. Despite Bitcoin (BTC) dipping down to the $50,000 range on Monday due to turbulence, transactions on centralized exchanges have remarkably hit a new all-time high. This could be a sign of increased activity or strategic maneuvering among investors, even in challenging times.

As an analyst, I’ve been tracking crypto transactions, and according to data from Blockchain.com, US-based exchanges processed approximately $1.14 billion in Bitcoin trades by August 6 – wrapping up the fourth Bitcoin halving cycle. This significant event on April 20 resulted in a reduction of miner rewards to 3.125 BTC per transaction.

Bitcoin Transaction Surge

According to Blockchain.com, the current market slump has led to an increase in Bitcoin transactions. In this turbulent time, some investors decided to cash out their assets, while others seized the moment as a chance to expand their holdings by purchasing more Bitcoin.

In the latest Bitcoin halving event, significant American cryptocurrency trading platforms experienced substantially higher trading activity than during past halvings.

In March 2024, before the Bitcoin halving event, the value of these transactions (approximately) equivalent to USD 1.14 billion was observed. During this period, the price of Bitcoin hovered approximately around USD 73,000, following a two-year downtrend from its previous levels.

As a crypto investor, I found myself drawn back into this vibrant digital economy due to the recent market surge – a compelling pull I couldn’t resist. Fear of missing out (FOMO) played a significant role in my decision-making process, leading me to expand my investments. This wave of activity has not only boosted Bitcoin transactions on centralized exchanges but also fueled activity on decentralized platforms, skyrocketing the number of transactions across the board.

The level of action on the Bitcoin network hit an unprecedented peak, with users engaging intensively with other networks that are part of its underlying structure.

Following the successful fourth Bitcoin halving in April, there was a significant shift. The daily number of Bitcoin transactions on major exchanges plummeted to just $30 million and has remained at that level up until August 6.

As an analyst, I should clarify that while the total volume of Bitcoin transactions might appear larger when considering all platforms, the data I’m working with is primarily sourced from prominent exchanges such as Coinbase and Binance.

Surge in Bitcoin Network Activity

Alongside Bitcoin transactions hitting a record peak of $1.14 billion, separate data from blockchain analysis company Dune indicates a significant increase in network usage.

On August 5th, it was noted by Dune that approximately 9 out of every 10 cryptocurrency transactions on the network were Bitcoin transactions, with the remaining 10% being handled by protocols such as Ordinals, BRC-20, and Runes. These other networks consumed less than 9% of the bandwidth utilized by the Bitcoin network.

In this case, these transactions originated not only from traditional crypto investors but also individuals, including hackers, who had obtained funds from past cyber attacks. These ill-gotten gains were then utilized to purchase more digital currencies like Ethereum (ETH).

As a researcher, I uncovered an intriguing piece of news on Monday, where it was revealed that the perpetrator behind the Nomad Bridge exploit utilized approximately 45 million DAI stablecoins to acquire around 16,892 Ether.

A blockchain security company named CertiK recently announced on platform X that a previously dormant account connected to a hack has become active again, approximately two years after its last activity, following the detection of a purchase made by this account.

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2024-08-06 14:57