Key Points
Bitcoin’s Surge and Exchange Deposits
As Bitcoin reached the $58,000 mark, a new all-time high in the volume deposited to centralized exchanges was set by short-term holders, reports Glassnode. Crypto exchanges are seeing an increase in short-term holders, who have been consistently depositing over $2 billion worth of Bitcoin daily since mid-January. They’ve also set a new maximum of $2.46 billion in total volume deposited.
Investors have been holding large amounts of unrealized profits since November 2022. This has led to an expansion in the total volume of deposits and withdrawals, reaching $5.57 billion in daily volume flowing in and out of exchanges.
According to Glassnode, the current market speculation can be seen in the incredibly high dominance of exchanges related in/outflows with respect to all on-chain volume. The data from the Swiss-based analytical blockchain firm shows that over 78% of all economic on-chain volume is being directed to/from exchanges as Bitcoin continues to reach new heights.
Bitcoin ETFs and Increased Demand
The recent surge in activity is not solely due to the rally. The introduction of new spot Bitcoin exchange-traded funds (ETFs) has also played a part in the increased demand. These ETFs have attracted approximately 90,000 BTC in net flows, totaling nearly $38 billion in assets under management.
According to Glassnode, these ETF products have allowed institutional investors to gain exposure to the BTC asset via traditional rails for the first time. This opens a new degree of freedom for demand and speculation.
Analysts at QCP Capital predict Bitcoin’s realized volume to remain around 40%. They suggest that reaching the $60,000 mark is a natural target for the March expiry. As of press time, Bitcoin is trading at $58,692, a level not seen since November 2021, according to CoinMarketCap data.
