Crypto Market Surges as Bitcoin On-Chain Transactions Hit $1.21 Trillion in January 2024, Highest Since September 2022
Crypto News – After experiencing four consecutive months of increasing transaction volume, the on-chain movement of Bitcoin saw an impressive surge in January 2024, reaching a staggering $1.21 trillion. This figure represents the highest value moved on-chain since September 2022 when Bitcoin was valued at approximately $20,000, as reported by data from The Block.
The noteworthy aspect of this surge is the contrast it presents with the performance of Bitcoin throughout the year 2023. Apart from December, Bitcoin consistently failed to exceed the $1 trillion volume mark. This trend, coupled with the unprecedentedly low active supply of Bitcoin, strongly suggests that traders have been eagerly anticipating the approval of spot Bitcoin ETFs. With the recent approval of these ETFs, the transaction volume appears to be aligning with these expectations. Notably, January marked the fourth consecutive month of increased volume, a significant departure from the relatively modest $550 billion in volume recorded in September 2023.
Analysts at Glassnode have observed that long-term Bitcoin holders seem to be displaying a strong reluctance to part with their coins at this juncture. Instead, they appear to be riding the waves of the market with a calm demeanor. In fact, it’s worth noting that the data from The Block indicates a decline in monthly transactions on the Bitcoin network between December 2023 and January 2024.
In summary, January 2024 has witnessed a remarkable upsurge in Bitcoin on-chain transactions, reminiscent of levels last seen in September 2022. This surge, combined with the anticipation of spot Bitcoin ETF approval and the steadfastness of long-term Bitcoin holders, paints an intriguing picture of the cryptocurrency market’s current dynamics.