Bitcoin Network Remains Deserted despite $110K Price Surge
Bitcoin soared to $110,000 on June 11, reigniting bullish sentiment across the crypto market. However, a closer look at the data paints a different picture.
A Ghost Town on the Bitcoin Network
According to CryptoQuant's analysis, the Bitcoin network is eerily quiet. The Network Activity Index has plummeted to a staggeringly low 3.47k - one of the lowest levels seen in the last 18 months. Retail demand has taken a hit, too, with on-chain transactions involving amounts under $10,000 - often used to gauge retail participation - dropping by over 5%.
Meanwhile, spot trading volume on centralized exchanges is at a 4.5-year low, echoing the same desolation. Interestingly, despite this slump in visible activity, a total of 847,200 BTC has transitioned to the long-term holder supply, suggesting that coins are being held rather than traded.
Ethereum Futures: The Silent Storm
While Bitcoin's spot and on-chain metrics remain subdued, the Ethereum derivatives market tells a different story. ETH open interest on futures platforms has reached a record 7.17 million ETH, and retail trading frequency on futures has spiked above its one-year average.
This shift from spot markets to futures, particularly among retail participants, suggests a market resting on pins and needles, waiting for the volatility to return.
The Calm Before the Storm?
Bitcoin may feel like a deserted town, but CryptoQuant hints that this could be the calm before the storm - a silent buildup before the volatility returns. While the surface-level data might seem bleak, deeper metrics reveal a market teeming with long-term conviction among holders and rising speculative energy in derivatives markets.
Hold tight! The crypto market might be about to flip the switch anytime soon.
Bonus Read: The discrepancy between Bitcoin’s price surge and certain on-chain activity data can be attributed to a shift in market structure: the current rally is largely spot-driven, with strong institutional accumulation and low speculation in futures. This leads to a more mature market where price and on-chain metrics may not always align perfectly, especially when retail participation is low and capital flows between asset classes create temporary divergences. [Source: CryptoQuant]
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- In contrast to the surge in Bitcoin's price, the Bitcoin network appears remarkably quiet, with the Network Activity Index reaching one of the lowest levels seen in the last 18 months.
- Simultaneously, Ethereum's futures market shows signs of a storm brewing, as open interest on futures platforms has reached a record high and retail trading frequency has spiked above its one-year average.
- The calm on the surface of the Bitcoin network could be a precursor to a return of volatility, as deeper metrics indicate a market with long-term conviction among holders and rising speculative energy in derivatives markets.
