Analysts at Glassnode have reported a significant decrease in activity within the Bitcoin network, which may indicate the approach of the final phase of the current market cycle. According to experts, the average monthly transaction volume in the Bitcoin network has fallen from $26.7 billion to $23.2 billion, reflecting a decrease of nearly 13%. This trend mirrors the recent decline in the value of this digital asset.
This is reported by Finway
Decline in Transaction Volumes and Speculative Activity
Experts note that a further drop in this indicator below the annual average of $21.6 billion would confirm a reduction in speculative interest and overall demand from market participants. According to Glassnode, this level may become critical for assessing Bitcoin’s future prospects.
“A break below the yearly average of $21.6B would confirm weakening speculative activity and signal a broader contraction in…”
Long-Term Holders and the Final Stage of the Cycle
Analysts have paid special attention to the behavior of long-term investors. As noted in the report, during the current cycle, they have already realized profits that exceed any other period except for 2016-2017. Such actions increase selling pressure and indicate that the market is approaching the final stage of growth.
Furthermore, according to Glassnode’s observations, this market cycle has lasted for 273 days with a predominant share of the supply in profit — this is the second-longest period in Bitcoin’s history. Only the cycle from 2015-2018 lasted longer — 335 days. This dynamic confirms the more prolonged nature of the current growth compared to previous market phases.
It is worth noting that earlier some analysts warned of potential risks of a decline in Bitcoin’s value in the event of increased mining centralization.