Bitcoin (BTC) Continues Downtrend Despite Daily Transactions Nearing All-Time High

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Bitcoin (BTC) continues its downward trend

As Bitcoin (BTC) continued its downward trend, the asset recently recorded a high volume of daily transactions approaching its all-time high. According to a report from on-chain analytics provider Glassnode, Bitcoin’s daily transaction count is approaching all-time highs, with an explosive rise in 2023.

Regardless of this news, Bitcoin continued to decline after its weekend trading plateau at just $29,300. The volume of asset transactions also increased slightly, indicating a possible violent sale.

Bitcoin Records Daily Transactions Approaching Peak Levels

According to Glassnode, on the 30-day moving average, daily Bitcoin transactions reached an amount of 348,700. While the record high seen in 2017 remains at 379,000 transactions per day. This proved that daily Bitcoin transactions are starting to approach the all-time high that was last seen around 5 years ago.

Number of Bitcoin (BTC) daily transactions. | Source: Glassnode

Moreover, according to the Glassnode report, this increase in daily Bitcoin transactions is due to ordinal registrations. Ordinal inscriptions, also known as Bitcoin non-fungible tokens (NFTs), or ordinals, are inscriptions (digital artifacts) inscribed on small satoshis (sats) units of Bitcoin.

Glassnode noted that listing accounts for around 30%-40% of transactions mined and 10%-20% of fees paid. Meanwhile, the remaining majority of transactions are monetary in nature, often done through exchanges.

According to Glassnode, compared to Ordinals activity on the Bitcoin blockchain, BTC exchange activity is relatively low, accounting for around 30% of fees and transactions.

The trend of creating inscriptions first gained popularity in February when users started inscribing NFTs on satoshis. However, the recent resurgence has been dominated by text-based inscriptions.

Glassnode noted:

Bitcoin transaction counts, address activity, registrations, and Mempool congestion are all high. Just like the degree of HODLing and the acquired offer below $30,000. The condemnation remains.

BTC continues its downtrend

Bitcoin (BTC) has yet to make a significant move in the past few days. Instead, it only seemed to pick up where it left off in its downtrend over the past few weeks. In the past 24 hours, the top crypto has fallen almost 4% with a market price of $28,435, at the time of writing.

Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

This downtrend follows a notable drop in the $30,000 region over the past few weeks. So far, Bitcoin has a 24-hour range between a low of $28,315 and a high of $29,944.

Meanwhile, BTC’s market cap is still in the green while its trading volume signals selling pressure, indicating a possible continued downtrend.

Over the past week, Bitcoin’s market capitalization has grown from a low of $528 billion on April 24 to $550 billion today. Its trading volume also increased from a daily trading volume of $15.4 billion to $19.8 billion, over the same period.

Featured image from Unsplash, chart from TradingView

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