Bitcoin Spot Volume Rivaled 2021 Bull Market In March: Glassnode
This year’s massive crypto rally was driven by the Bitcoin spot market, with on-chain analysis offering a unique look into the current state of the market cycle, according to Glassnode.
Examining Bitcoin trading activity, spot volumes peaked at $14.1 billion in March, similar to levels seen at “the height of the 2020-2021 bull market,” wrote the firm in a Tuesday report. Those volumes have since cooled to about $7 billion per day in April.
Similarities to the 2021 bull run are also visible when applying a fast/slow momentum indicator to spot volume. As of April 6, Bitcoin’s 30-day moving average for volume was $9.59 billion – significantly higher than its 180-day volume average of $5.95 billion.
In fact, net exchange flows – inflows plus outflows from Bitcoin exchanges – are now significantly higher than in 2021, reaching $8.19 billion per day.
“Overall, Bitcoin’s YTD price action is supported by a significant uptick in spot trade volume, and exchange flows on-chain,” Glassnode wrote.
Back in January, a major force within the Bitcoin spot market emerged in the form of U.S. Bitcoin spot ETFs. According to a separate analysis this week by lead Glassnode analyst James Check, spot ETFs now account for about 30% to 50% of the major forces affecting Bitcoin’s spot price.
How Big are the #Bitcoin ETFs Anyway?
Latest @_checkonchain analysis is live, and we're addressing two key questions I've received a lot lately:
1) How big is the impact of the ETFs?
2) Is $GBTC really Long-Term Holder supply?
Enjoy folks!https://t.co/SRU8oj37qB pic.twitter.com/jqLC7ePMeF
— _Checkmate
Read more on cryptonews.com
