Bitcoin On-Chain Activity Remains Slow as BTC Struggles around $35,000

The total transfer volume of Bitcoin has dropped significantly over the last few weeks.

Bitcoin is currently trading near $35,000 with a market cap of nearly $650 billion. However, BTC’s market sentiment remained negative due to a dip in its on-chain activity.

In a recent post on Twitter, Glassnode, the leading crypto analytics and research firm, mentioned that the total USD denominated transfer volume of Bitcoin has returned to the levels seen in December 2020. According to Glassnode, Bitcoin’s total transfer volume (entity-adjusted) has reached $239 million per day.

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Additionally, the Bitcoin network saw a major drop in the total number of active BTC addresses in June 2021. During the last week of June, Glassnode mentioned that active BTC addresses touched 900,000, which is down by approximately 25% from the recent peak of 1.16 million.

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In addition to the latest dip in the network activity of Bitcoin, the overall market sentiment remained negative in recent days. “The amount of Bitcoin traders who are continuing to buy the dip continues to show decline as social volume toward BTC is low and FUD posts on Twitter are high,” the crypto research firm, Santiment mentioned in a post today.

Bitcoin’s Institutional Inflows

Despite the recent drop in its on-chain activity and price, Bitcoin saw a jump in the overall institutional inflows last week. According to the latest weekly digital asset fund flows report published by CoinShares, BTC investment products attracted $39 million worth of investment last week, which is the highest level in nearly 5 weeks.

Furthermore, Bitcoin whales have increased transfer activity during the last few days. Earlier this week, Finance Magnates reported about the movement of 7,062 BTC from cryptocurrency exchange Coinbase to digital wallets. Two crypto whale accounts moved 3,574 and 3,488 BTC in two separate transactions. Large BTC accounts hold significant importance in the overall network activity of Bitcoin. According to the latest data by Santiment, large BTC addresses holding between 100 and 10,000 BTC now have more than 9 million coins, which is the highest level on record.

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