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Bitcoin Sets New On-Chain Volume Record Since September 2022

Bitcoin on-chain activity at its highest level in more than a year

January 2024 marked a milestone for Bitcoin, showcasing the highest on-chain volume recorded since September 2022. This significant surge, detailed by Cryptostake, revealed that over $1.21 trillion of Bitcoin was transacted, eclipsing figures from the past 16 months and more than tripling the volume seen in September 2023.

Following a period of steady growth, this upswing in transaction volume is particularly noteworthy. Throughout 2023, Bitcoin struggled to break the $1 trillion monthly volume mark, with December being the sole exception. The recent approval of spot Bitcoin ETFs is seen as a key driver behind this renewed market vigor, aligning with four consecutive months of increasing volume, starting from a base of $550 billion in September 2023.

Despite the overall increase in transaction volume, Glassnode analysts observed a dip in monthly transactions from December 2023 to January 2024. This paradox highlights a cautious optimism among long-term Bitcoin holders, who, according to Glassnode, "appear to be calmly riding the market waves," showing reluctance to sell despite the positive trends.

This resurgence in Bitcoin's on-chain activity not only underscores the growing investor interest and market confidence but also signals a potentially transformative phase for cryptocurrency, with long-term holders playing a pivotal role in shaping its trajectory.