Crypto analytics firm Glassnode says Bitcoin is witnessing a major spike in large transactions this year, indicating that deep-pocketed investors are fueling its 2021 resurgence.
During the 2019-2020 bear market, the average Bitcoin transaction size was $6,000-$8,000, and the period was dominated by retail investors and early investment fund participants, according to the firm.
By comparison, the bull run between late 2020 and early 2021 has seen a surge in average transaction size, climbing all the way up to $58,600 during the May sell-off.
The average BTC transaction size has cooled off since and is now hovering between $30,000 and $36,000.
“Relative to the 2019-20 period, this represents a significant 370% increase, despite the recent correction, reflecting continued and sticky institutional sized interest.”
The analytics firm adds that transactions larger than $10 million have grown to represent more than 30% of Bitcoin’s transaction volume dominance, up from 10% in October of last year.
“This reflects a notable growth in large-size capital allocation and trading activity.”
Bitcoin plummeted in price in the past day from a high of $52,853.45 to a low of $45,299.59, a more than 14% decrease. The crypto asset is trading at $47,256.67 at time of writing, according to CoinGecko.
Glassnode says more than $4 billion in Bitcoin open interest was cleared during the day’s sell-off. Open interest refers to the total number of derivative contracts that remain outstanding.
“This is the most significant leverage flush out since the sell-off in mid-May.”Check Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Juanjo Tugores