Recent data from IntoTheBlock reveals that large Bitcoin investors have been actively increasing their holdings.
Bitcoin BTC $65 454 24h volatility: 3.0% Market cap: $1.31 T Vol. 24h: $48.75 B trading has surged to new heights in the first eight months of 2024, with the cumulative trading volume reaching $2.874 trillion.
This figure represents a significant increase of nearly 20% compared to the $2.424 trillion recorded during the same period in 2021, marking the highest volume since 2012.
Increased Market Activity amidst High Volatility
According to a recent weekly report by data analytics firm Kaiko, this surge in trading volume is driven by heightened market activity and increased investor participation. The rise in volatility, particularly noticeable in April when Bitcoin’s 10-day realized volatility spiked to an annualized 100%, has been a key factor. This volatility was spurred by strong inflows into US-listed spot exchange-traded funds (ETFs) and expectations of Federal Reserve rate cuts, which drove Bitcoin prices above $70,000.
In August, concerns about the US economy and the unwinding of the yen carry trade contributed to further volatility, impacting various risk assets, including cryptocurrencies. Despite these fluctuations, Bitcoin’s market activity has remained robust.
Large Investors Increasing Their Holdings
Recent data from IntoTheBlock reveals that large Bitcoin investors have been actively increasing their holdings. Investors holding between 100 and 1,000 BTC have accumulated over $10 billion in Bitcoin over the past six months. These large holders now control 20.3% of the total Bitcoin supply, up from 3.82 million BTC to 4.01 million BTC, a 5% increase.
This accumulation suggests confidence in Bitcoin’s long-term value, even as short-term holders, who have held Bitcoin for less than 155 days, may face selling pressure if market conditions deteriorate.
Addresses holding between 100 and 1,000 BTC now control 20.3% of the circulating supply, equivalent to 4.01 million BTC.
This marks a 5% increase from 3.82 million BTC six months ago, highlighting growing accumulation by large holders pic.twitter.com/JwkxBgWmDS
— IntoTheBlock (@intotheblock) September 8, 2024
As of the latest data, 78% of all Bitcoin addresses are currently profitable. However, this profitability varies significantly among different buyer cohorts. Specifically, addresses that purchased Bitcoin between $47,000 and $64,000 are facing potential selling pressure, with only 27.6% of these addresses still in profit.
Spot Bitcoin ETFs Show Growing Institutional Interest
In addition to trading volume and investor accumulation, spot Bitcoin ETFs have also seen notable activity. After experiencing eight days of negative flows, US spot Bitcoin ETFs reported $28.72 million in net inflows on Monday. Fidelity’s FBTC led the inflows with $28.6 million, while Bitwise’s BITB followed with $21.99 million. However, outflows were noted from Grayscale’s GBTC and BlackRock’s IBIT, with IBIT recording $9.06 million in net outflows. Despite these fluctuations, Bitcoin ETFs have accumulated $16.92 billion in net inflows since their inception in January.
As Bitcoin continues to experience high trading volumes and significant institutional interest, market participants are keeping an eye on broader economic and political developments, including upcoming events like the US presidential election debate, which could further influence cryptocurrency markets.
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