Analysts at Glassnode have noted a significant decrease in activity within the Bitcoin network, which may indicate that the market is approaching the final stage of the current cycle. According to their observations, the average monthly transaction volume has decreased by nearly 13% — from $26.7 billion to $23.2 billion. This decline coincided with the recent drop in the price of the leading cryptocurrency.
This is reported by Business • Media
Transaction Dynamics and Investor Behavior
Experts at Glassnode emphasize that further declines in volume below the annual average of $21.6 billion will signal a weakening of speculative interest and a broader withdrawal of demand among market participants. In the opinion of experts, this may indicate a transition of the industry into a phase of general cooling.
They believe that falling below the annual average level of $21.6 billion could indicate a decrease in speculative interest and an overall reduction in demand from network participants.
Additionally, experts have pointed out the activity of long-term Bitcoin holders. According to their estimates, within this cycle, such investors have already realized greater profits than in any other period, except for 2016-2017. This trend intensifies selling pressure and serves as further evidence of the market’s transition to the final phase.
Duration of the Current Cycle and Historical Comparisons
Analysts noted that the current cycle has lasted for 273 days, with the majority of the supply being in profit. This is the second-longest period with such dynamics in Bitcoin’s history — only the 2015-2018 cycle, which lasted 335 days, was longer. Such dynamics suggest a more prolonged nature of the current growth compared to previous cycles.
Previously, some experts have pointed out potential risks for the Bitcoin market, particularly due to the increasing centralization of mining, which could impact the stability of the asset’s price.