Large BTC Transactions Per Day Could Have Adverse Effects To The Market
The volume of BTC transactions has increased in recent weeks. For the first time in more than 2 years, there have been more than 10 million BTC transactions in a single day. Most of the activity comes from whale institutional investors who are able to afford larger transactions.
Large transactions on #Bitcoin reached over 10M $BTC in a day for the first time in over 2 years
Institutional activity appears to be in an up-trend 📈 pic.twitter.com/wQC9AzAxhk
— IntoTheBlock (@intotheblock) September 15, 2021
While a higher volume indicates that a cryptocurrency is doing well, it might not be a very desirable outcome. A lower inflow of funds might mean that the market is stable. With a drastic increase in network activity, the inflow volumes also increase vastly.
However, the case with BTC is that there has not been a large inflow in exchanges. The most activity can be noticed from movements of funds between the wallets. Even so, such amounts cannot be directly withdrawn due to the negative effects it could have on the price of BTC.
BTC fell by 15% on September 7, primarily because institutional investors sold around 70,000 BTC. After that, those investors bought around 60,000 BTC.
People who have more recently joined the cryptocurrency market actively engage and increasing transaction volumes. However, BTC holders (HODLERS) are not willing to do so. They have had the lowest spending rates in the network for many years now. This also suggests that the reserves are getting at lower levels
Currently, BTC is trading at around $47,900.
Also read: Standard Chartered: Bitcoin To $100K In Early 2022