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Bitcoin’s bull market since early 2023 has been accompanied by a near 70% increase in price and an increase in Bitcoin trading volume.
Daily trading volume recently surpassed $70 billion, reaching its highest level since the aftermath of the FTX collapse.
Bitcoin finally climbed just above $28,000, up more than 40% from its previous monthly low below $20,000.
In fact, Bitcoin trading volume appears to be on a decisive upward trend, with 21- and 50-day moving average volumes recently surpassing the 200 DMA, the former nearing its highest level since mid-2021.
Increased trading volumes occur during periods of aggressive market movement, i.e. periods of sharp bull and bear markets.
Bitcoin bulls want the market to stay in the first of these phases.
On-chain indicators also trend positive
Improvements related to bitcoin trading activity on exchanges come when on-chain data shows activity on the bitcoin blockchain itself is also recovering.
The number of daily transactions on the Bitcoin blockchain recently reached its highest level since early 2021, as seen in the graph below presented by The Block.
Meanwhile, while the growth in the number of active addresses on the Bitcoin network in recent weeks has been less impressive, the metric is still nearing multi-month highs.
Elsewhere, the rate of new addresses interacting with the Bitcoin network for the first time is also on the rise.
Addresses with non-zero balances also continue to trend upward. According to data presented by Glassnode, this metric recently crossed 45 million for the first time.
Financial Crisis Concerns Could Drive Bitcoin Higher
Despite mounting technical signs that the Bitcoin market is heating up in the near term, analysts say financial crisis rumors could push the world’s largest cryptocurrency by market cap even higher. I believe there is.
Bitcoin has been serving as a safe haven in recent weeks, rallying alongside gold as investors look to alternative currencies that are less vulnerable to the collapse of the traditional financial system. .
If Federal Reserve Chairman Jerome Powell muddles his communications about the prospects for tightening in the aftermath of Wednesday’s policy announcement, that could exacerbate concerns about the crisis.
According to Bloomberg senior macro strategist Mike McGlone, Bitcoin’s recent price outperformance against gold could signal the beginning of a new “super cycle.”
McGlone also noted that recent relative strength against most assets suggests that Bitcoin is shifting to trading like gold and US Treasuries (i.e., safe havens) rather than risk assets. I assumed there might be.