How Bitcoin’s recent surge affected trading volume

Post­ed: Sep­tem­ber 16, 2023

• Bit­coin active address­es recent­ly surged to a 5‑month high.
• BTC’s vol­ume has, how­ev­er, remained the same.

The recent rise in the price of Bit­coin [BTC] has led to an increase in on-chain trans­ac­tions. With this rise in trans­ac­tion activ­i­ty, have there been any notable impacts on oth­er aspects?

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Bitcoin sees active addresses and on-chain transactions

Accord­ing to a San­ti­ment post, the num­ber of active Bit­coin address­es recent­ly reached its high­est point in the past five months. On 14 Sep­tem­ber, the chart dis­played an increase to over 1.1 mil­lion active addresses. 

While the num­ber of active address­es had sur­passed 1 mil­lion before, it had nev­er exceed­ed 1.1 mil­lion until now. As of this writ­ing, there were approx­i­mate­ly 268,000 active addresses.

Source: San­ti­ment

Fur­ther­more, the San­ti­ment chart indi­cat­ed a simul­ta­ne­ous surge in the ratio of dai­ly on-chain trans­ac­tion vol­ume for prof­it to loss. On 14 Sep­tem­ber, this met­ric spiked to approx­i­mate­ly 2.34, mark­ing its high­est lev­el in recent weeks. 

As of this writ­ing, this ratio had declined to around 1.6.

Delving deeper into the Bitcoin addresses

Delv­ing deep­er into Bitcoin’s active address­es, the 30-day active address met­ric revealed a slight uptrend. The chart indi­cat­ed that this uptrend com­menced around 9 Sep­tem­ber, when it stood at approx­i­mate­ly 18.1 mil­lion addresses. 

As of this writ­ing, the num­ber of 30-day active address­es has increased to over 18.2 million.

Source: San­ti­ment

The observed trends in both active address­es and on-chain trans­ac­tion vol­ume sug­gest­ed there has been note­wor­thy activ­i­ty on the Bit­coin net­work. How­ev­er, to ascer­tain its impact on trad­ing vol­ume, more data and analy­sis would be needed.

Volume remains steady

Despite the notable spikes observed in oth­er met­rics, the trad­ing vol­ume for Bit­coin has remained rel­a­tive­ly sta­ble, with no sig­nif­i­cant increas­es noticed. As of this writ­ing, the trad­ing vol­ume stood at approx­i­mate­ly $13 billion. 

The high­est trad­ing vol­ume record­ed this year occurred around the 20 July, when it surged to over $93 bil­lion. This sug­gest­ed that despite the increased on-chain trans­ac­tion vol­ume and active address­es, the over­all trans­ac­tion vol­ume has remained with­in a nor­mal range.

Source: San­ti­ment

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Checking the Bitcoin flow direction

While the on-chain trans­ac­tion vol­ume could sug­gest prof­it-tak­ing activ­i­ties, the press time flow of Bit­coin indi­cat­ed that more BTC was leav­ing cryp­tocur­ren­cy exchanges. Accord­ing to CryptoQuant’s exchange flow chart, BTC out­flows have been dom­i­nant as of this writing. 

The net­flow, as of this writ­ing, was approx­i­mate­ly ‑4,680 BTC, sig­ni­fy­ing a sub­stan­tial amount of Bit­coin leav­ing the exchanges.

Source: Cryp­to­Quant