According to The Block, analysts from the blockchain analytics firm Glassnode stated that despite a slight increase in spending on older bitcoins after the approval of a US spot ETF, most long-term bitcoin investors are still unwilling to sell their coins at the current price.
In the latest on-chain weekly report released on Tuesday (30th), Glassnode pointed out that the majority of bitcoin HODLers (long-term holders) “seem to be calmly riding out market volatility.” When referring to the final active supply indicator of bitcoin (measuring the percentage of circulating supply held over multiple years), analysts stated that “the majority of bitcoin holders remain steadfast, with the holding supply percentage for various coin ages slightly below historical highs.”
The report also mentioned selling pressure from the one-year and two-year holder groups, stating that “many (but not all) are related to GBTC (Grayscale’s Bitcoin Spot ETF), indicating a considerable amount of older supply has been moving in recent weeks.”
ETF flow drives increased trading volume
According to Tuesday’s K33 Market Research report, bitcoin spot trading volume “has remained at higher active levels after the ETF approval.”
The report added that the increase in trading volume may partially be attributed to the flow of the bitcoin spot ETF. K33 analysts also stated that The Block’s data shows that bitcoin’s monthly on-chain trading volume reached a multi-month high in January. With nearly two days left in the month, the trading volume for January has reached $1.11 trillion. Since September 2023, bitcoin’s on-chain trading volume has been steadily increasing.
