The post Bitcoin Volume Crashes 46%: Are Investors Losing Interest? appeared on BitcoinEthereumNews.com.

On-chain data shows the Bitcoin transaction volume has seen a sharp plunge since its high last year. Here’s what this could imply for BTC. Bitcoin Transfer Volume Has Declined To Just $11.2 Billion In a new post on X, the on-chain analytics firm Glassnode has talked about the latest trend in the Total Transfer Volume for Bitcoin. The “Total Transfer Volume” here refers to a metric that measures the total amount of the cryptocurrency (in USD) that’s becoming involved in transactions on the network every day. When the value of this indicator is high, it means the investors are moving around large amounts on the blockchain. Such a trend suggests the trading interest in the asset is high. On the other hand, the metric being low implies the traders may not be paying much attention to the asset as they aren’t participating in much transaction activity. Now, here is the chart shared by Glassnode, that shows the trend in the Bitcoin Total Transfer Volume over the last couple of years: The value of the metric appears to have been climbing in recent days | Source: Glassnode on X In the graph, the version of the Bitcoin Total Transfer Volume displayed is the “Entity-Adjusted” one. What this means is that the indicator only keeps track of the transfers happening between different entities, not individual addresses. An ‘entity‘ is a cluster of addresses that the analytics firm has determined to belong to the same investor. Transactions between the wallets of the same owner are naturally not relevant for the wider market, so adjusting for entities can make the indicator output more accurate results. From the chart, it’s visible that the Entity-Adjusted Total Transfer Volume witnessed a sharp surge towards the end of last year. This increase in the indicator came as the…

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Filed under: News - @ January 25, 2025 1:25 pm