As a seasoned researcher with over two decades of experience in financial markets and technology trends, I find myself captivated by the surge in Bitcoin trading activity we’ve witnessed this year. The sheer volume, approaching levels not seen since 2012, is a testament to the increasing mainstream adoption of cryptocurrencies.
In the initial eight months of 2024, Bitcoin‘s trading activity has soared, accumulating a total trading volume of an impressive $2.874 trillion. As of now, the current trading price stands at approximately $57 147, with a daily volatility of 3.4%. The market capitalization is staggering at $1.13 trillion, and the 24-hour volume has reached an impressive $35.31 billion.
During the same timeframe in 2021, we saw a record-breaking surge of approximately 20% more than the previously recorded $2.424 trillion, making this the largest volume since 2012.
Increased Market Activity amidst High Volatility
As a researcher delving into the current market dynamics, I’ve been closely observing the significant increase in trading volume that Kaiko’s recent weekly report attributes to heightened market activity and increased investor participation. One striking observation is the rise in volatility, particularly evident in April when Bitcoin’s 10-day realized volatility peaked at an annualized 100%.
In August, worries over the U.S. economy and the unwinding of the yen carry trade added to market turbulence, affecting a range of risky investments like cryptocurrencies. However, Bitcoin’s trading activity has continued to show strength amid these ups and downs.
Large Investors Increasing Their Holdings
Lately, findings from IntoTheBlock suggest that substantial Bitcoin investors have been steadily boosting their Bitcoin stash. Over the last half year, investors owning between 100 and 1,000 Bitcoins have amassed approximately $10 billion worth of Bitcoin. These large-scale holders now manage around 20.3% of the entire Bitcoin market, having grown their share from 3.82 million BTC to 4.01 million BTC – a rise of about 5%.
The buildup indicates a strong belief in Bitcoin’s future worth, despite the possibility that short-term investors, those owning Bitcoin for fewer than 155 days, might feel compelled to sell if market situations worsen.
Approximately 20.3% of all circulating Bitcoins are currently held in wallets containing between 100 and 1,000 Bitcoins, which amounts to approximately 4.01 million Bitcoins.
As someone who has closely followed the crypto market for several years now, I have noticed a significant trend: The number of Bitcoins held by large holders is on the rise. Six months ago, there were 3.82 million BTC in circulation among these big players, and today that figure has grown by a substantial 5%. This is not just a minor fluctuation; it’s a clear indication that large-scale investors are increasingly accumulating Bitcoin. This development mirrors my own experience, as I have also been steadily adding to my Bitcoin holdings over the past year due to my belief in its long-term potential. The growing accumulation by these large holders is a testament to the confidence they have in Bitcoin’s future and serves as a strong signal for those of us who are already invested or considering entering the market.
— IntoTheBlock (@intotheblock) September 8, 2024
According to the most recent figures, approximately 3 out of every 4 Bitcoin wallets are currently yielding a profit. Yet, the level of profitability differs greatly among different groups of buyers. Particularly, those who bought Bitcoin when its price ranged from $47,000 to $64,000 are under potential selling pressure, as only about 27.6% of these wallets remain profitable.
Spot Bitcoin ETFs Show Growing Institutional Interest
Beyond trading volume and investor stockpiling, Bitcoin Spot Exchange-Traded Funds (ETFs) have also witnessed significant action. After a streak of eight consecutive days with decreased investments, US spot Bitcoin ETFs recorded $28.72 million in net inflows on Monday. Fidelity’s FBTC spearheaded these inflows with $28.6 million, and Bitwise’s BITB trailed closely behind with $21.99 million. On the other hand, Grayscale’s GBTC and BlackRock’s IBIT experienced outflows, with IBIT reporting a net outflow of $9.06 million. Despite these ebbs and flows, Bitcoin ETFs have amassed a total of $16.92 billion in net inflows since their launch in January.
With Bitcoin consistently witnessing heavy trading activity and growing attention from institutions, investors are closely monitoring wider economic and political occurrences, such as the approaching US presidential debate, as these events may have a substantial impact on the cryptocurrency market.
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2024-09-10 13:12