- Bitcoin faced declining trading volumes amid a price correction and ETF approval delays.
- Whales continued to accumulate Bitcoin, signaling long-term confidence.
Over the last few days, Bitcoin’s [BTC] once-spirited price momentum encountered a roadblock after surging beyond the $25,000 mark. Simultaneously, the king coin’s trading volume, a critical metric for evaluating market activity, dwindled.
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According to Santiment’s data, Bitcoin witnessed its lowest trading volume in terms of dollar value since March 2019. This decline correlated with a decrease in the supply of Bitcoin available on exchanges, an event that transpired almost three years ago.
Reduced trading volume can lead to increased price volatility, making Bitcoin more susceptible to rapid price swings.
Moreover, the expected approval of Bitcoin Exchange-Traded Funds (ETFs) faced delays. The U.S. Securities and Exchange Commission (SEC) postponed its decision on the proposed ARK 21Shares Bitcoin ETF until next year, setting a new deadline for January 10.
A similar delay was applied to the proposed Global X Bitcoin Trust, the decision of which was shifted to November 21. These delays signaled potential holdups for other applications seeking approval for spot Bitcoin funds.
The setback in ETF approvals could affect Bitcoin’s overall market sentiment. Approval of these ETFs would have marked a significant milestone for Bitcoin, potentially attracting more institutional investment and mainstream adoption.
The delays, however, cast uncertainty on the timeline for such developments.
State of investors
Despite these challenges, data from Glassnode revealed that whales were accumulating Bitcoin. The number of addresses holding 10 or more Bitcoins recently reached an all-time high at 157,629.
This accumulation trend suggests that large investors and institutions are confident in Bitcoin’s long-term potential, even in the face of short-term uncertainties.
Interestingly, these accumulating addresses were displaying remarkable patience. Glassnode’s data also showed that the amount of HODLed or lost Bitcoin reached a five-year high at 7,893,256.940 BTC at press time.
This metric underscored the increasing conviction among Bitcoin holders, as more coins are being locked away, reducing the available supply for trading.
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However, Bitcoin’s recent price performance told a different story. At the time of writing, Bitcoin was trading at $26,275, having experienced a decline in the past few days. Furthermore, the number of daily active addresses on the Bitcoin network also decreased during this period.
These declines in both price and network activity raise concerns about short-term market sentiment. The reduced number of daily active addresses may indicate a lower level of user engagement with Bitcoin, potentially contributing to the ongoing price correction.