The low -time data of Bitcoin chain causes concerns in the crypto currency community. Some investors see Bitcoin’s on-Chain trading volume in 2021 as a sign that a new bull run will not come.
Bitcoin turns into a reserve being?
Binance’s former CEO Changpeng Zhao (CZ) handled Bitcoin’s decreasing transaction volume from a different perspective. According to CZ, Bitcoin may now be seen as a reserve asset, so the chain processes may be reduced.
CZ, high trading fees and long block times, Bitcoin is more than a daily transaction instrument, but a tool of value storage, he said. In addition, due to the increasing popularity of Bitcoin ETFs, investors now take positions over ETFs instead of directly BTC.
Effect of ETFs on Bitcoin
This view of CZ coincides with Fidelity’s Crypto Research Director Chris Kuiper’s previous statements. With the spread of Bitcoin ETFs, Kuiper argues that it is natural to reduce the volume of on-achin.
Bitcoin ETFs allow investors to access the BTC through funds traded on the stock market instead of directly Bitcoin. Although this reduces the on-ach process volume, it may increase the adoption of Bitcoin and have a positive effect on the price in the long run.
A new movement is expected in Bitcoin
Bitcoin is currently traded at $ 97,270 and is dominated by low volatility throughout the market. However, according to analysts, Bitcoin’s low fluctuation levels can be a harbinger of a large price movement.
Bitcoin’s lowest level of volatility since the last quarter of 2023 means that a major break may approach. According to past data, BTC exhibits hard or downward movements after low volatility periods.
Taurus market expectations continue
Although Bitcoin’s decrease in chain activities are worried about some investors, the view that the market is in the rise trend gains weight. The fact that ETFs increase institutional investment in Bitcoin indicate that the price in the long term can move upward.
Some analysts think that Bitcoin can see new summits in 2024 and the price can exceed $ 100,000. However, transaction fees and slow trading times may accelerate the positioning of Bitcoin as a value storage tool rather than daily use.
