Bitcoin Sees Highest On-Chain Volume Since September 2022, Driven by ETF Approval

• Bitcoin’s January 2024 on-chain transaction volume surpassed all months since September 2022, tripling September 2023’s value.
• This surge follows four months of steady volume growth, totaling $1.21 trillion moved on-chain.
• Analysts attribute the increase to anticipation and subsequent approval of spot Bitcoin ETFs.

The year 2024 started strong for Bitcoin, with its on-chain transaction volume reaching its highest point since September 2022. Data reveals that a staggering $1.21 trillion worth of Bitcoin moved on-chain in January, marking a significant jump from September 2023’s $370 billion.

This surge comes after four consecutive months of rising transaction volume, suggesting a sustained trend in on-chain activity.

Analysts point to two key factors driving this growth- anticipation and eventual approval of spot Bitcoin ETFs. The approval of these ETFs in late 2023 fueled investor excitement and trading activity, leading to the observed increase in on-chain volume.

This aligns with the fact that Bitcoin failed to surpass $1 trillion monthly volume throughout 2023, except for December, indicating pent-up demand waiting for the ETF green light.

Despite the higher transaction volume, the number of monthly transactions on the Bitcoin network decreased from December 2023 to January 2024. The Glassnode analysts observe that long-term Bitcoin holders remain reluctant to sell their coins, choosing instead to “ride the market waves” with a long-term perspective.

This surge in on-chain activity suggests renewed confidence and interest in Bitcoin, fueled by the recent ETF approval. The number of individual transactions has dipped, the larger value transfers indicate continued institutional involvement and a potentially bullish outlook for the world’s leading cryptocurrency.