Glassnode: Short-term Bitcoin Investors Are Increasing Activity on Crypto Exchanges as BTC Rises

As Bitcoin (BTC) hits the $60,000 mark, short-term holders have achieved a new record in the volume deposited to cryptocurrency exchanges, as reported by Glassnode.

Cryptocurrency exchanges are experiencing a surge of short-term holders, who have consistently deposited more than $2 billion worth of Bitcoin daily since mid-January, while also reaching a new peak of $2.46 billion in total deposits, according to a recent research report from Glassnode.

With investors holding substantial unrealized profits since November 2022, the overall volume of deposits and withdrawals has continued to grow, reaching $5.57 billion in daily transactions flowing in and out of exchanges, analysts observe.

Bitcoin exchange inflow

“The level of speculation in the current market is evident from the exceptionally high proportion of exchange-related in/outflows compared to all on-chain volume.”

See Also: Bitcoin (BTC) Price Soared By 9%, Is $60K Target Possible Soon?

The data from the Switzerland-based analytical blockchain firm reveals that over 78% of all economic on-chain volume is being transferred to/from exchanges as Bitcoin continues to reach new heights.

Nonetheless, the increase in activity is not solely due to the recent price surge, as the launch of new spot Bitcoin exchange-traded funds (ETFs) has also played a role in boosting demand.

These ETFs have drawn in approximately 90,000 BTC in net flows, amounting to nearly $38 billion in assets under management.

“These ETF products have, for the first time, enabled institutional investors to gain exposure to the BTC asset through traditional channels, creating a new level of freedom for demand and speculation.”

Analysts at QCP Capital expect Bitcoin’s realized volume to stay around 40%, indicating that reaching the $60,000 target is a natural objective for the March expiry.

At the time of writing, Bitcoin is trading at $60,262.43, a level not observed since November 2021, according to Coinstats data.

BTC Price Chart | Source: Coinstats

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