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Bitcoin: What surging volumes tell about BTC investors

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BTC’s on-chain volume climbed to a new high.
97% of all trades executed on that day exceeded $100,000.

Bitcoin [BTC] saw a surge in activity this week, with on-chain volume reaching its highest level since FTX collapsed in November 2022.

In a post on X (formerly Twitter), data provider IntoTheBlock found that on 10th January, when the U.S Securities and Exchange Commission (SEC) approved all the Bitcoin Exchange-Traded Fund (ETF) applications before it, BTC’s on-chain volume climbed to $60 billion.

Bitcoin’s on-chain volume reached its highest since the FTX collapse.
Bitcoin recorded $60B in total volume on Wednesday, which was almost entirely driven by large transactions. 97% of the total volume, $58.76B, came from transactions of over $100k. pic.twitter.com/rMWh7zWMaS

— IntoTheBlock (@intotheblock) January 12, 2024

IntoTheBlock further added that a whopping 97% of this volume, or $58.2 billion, originated from transactions exceeding $100,000.

The dominance of large transactions suggests significant participation from large investors, potentially drawn to trade the asset due to the legitimacy given to it by the SEC-approved ETF.

Where are US-based investors?

Interestingly, a regional assessment of where the trading activity emerged revealed a decline in institutional participation in the U.S. since the arrival of the ETF approval.

AMBCrypto found that there has been a decline in BTC’s Coinbase Premium Gap since 8th January. This metric tracks the difference between BTC’s price on Coinbase and Binance.

When this indicator returns a positive value and rises, it means that BTC is trading at a premium on Coinbase.

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Author: Abiodun Oladokun

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