On-chain exchange activity exploded during Bitcoin’s recent breakout,
seemingly confirming the legitimacy of the price momentum.
Bitcoin’s (BTC) recent breakout was accompanied by a massive spike in on-chain exchange volume activity, according to data from Glassnode.
On-Chain exchange activity. Source: Glassnode.
Unlike regular trading volume that is often artificially inflated by the exchanges,
on-chain activity may be more indicative of the true patterns.
Interestingly, the only metric that experienced a downward trend is the
number of exchange deposits. This may be a bullish sign in its own
right.
Weekly percentage change in volume. Source: Kaiko.
700% growth in DAI/USDT
The
data for the previous week indicates a major spike in off-chain trading
volume as well. For instance, the BTC/USD pair saw a 70% increase in
its biggest bounce since April; DAI/USDT spiked by over 700% in the same
time period.
Bloomberg believes that the fundamentals indicate that Bitcoin will surpass $12,000 this year, if not higher. With the massive push coming over the last 24 hours, some began to speculate whether Bitcoin can break its all-time high of $20,000.
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