An Impressive January for Bitcoin:
- In January 2024, Bitcoin’s on-chain volume reached its highest level since September 2022.
- Over $1.21 trillion worth of Bitcoin was traded, marking a significant increase compared to previous months.
- Despite the increase in volume, the number of monthly transactions on the Bitcoin network decreased.
A Record Start to the Year for Bitcoin
January 2024 proved to be quite a remarkable month for Bitcoin, with an on-chain volume of approximately $1.2 trillion, a level that had not been seen since September 2022. This surpasses the monthly volumes of the entire year 2023, except for December, where the volume slightly exceeded $1 trillion.
This clearly shows a significant renewed interest in Bitcoin, particularly after the approval of cash-settled Bitcoin ETFs, an event eagerly awaited by investors. In fact, this approval seems to have acted as a catalyst, leading to an increase in transactions, despite Bitcoin’s active supply reaching historically low levels.
Currently, BTC is trading around $43,000 and has been relatively stable since last week.
A Decrease in Monthly Transactions for Bitcoin
While the transaction volume experienced a significant increase, the number of monthly transactions on the Bitcoin network paradoxically decreased between December 2023 and January 2024. This could mean that long-term Bitcoin holders appear reluctant to sell their assets, preferring to ride the market waves instead.
This cautious attitude may reflect confidence in the long-term value of Bitcoin, despite short-term turbulence. Analysts at Glassnode highlight this trend, noting that investors seem to be adopting a strategy of holding rather than realizing immediate profits.
