Bitcoin Transactions Hit Yearly High, But What Does It Mean?
On May 28th, 2024, the total value of Bitcoin transactions on the blockchain reached an impressive $25 billion. This marks the highest point in U.S. dollars for Bitcoin’s on-chain transaction value over the past year.
On-chain transaction value refers to the total estimated dollar value of all transactions happening on the Bitcoin blockchain. This metric is closely watched by traders as it can offer clues about current trends and potentially influence trading decisions.
Large Transactions, Not a Surge in Activity
While the total transaction value hit a yearly high, it’s important to note that the number of individual transactions remained fairly typical. According to Bitcoin explorer Blockchain.com, roughly 367,000 BTC moved on the blockchain that day. This is significantly lower than the peak of over 519,000 BTC seen in June 2022.
The key difference lies in the price of Bitcoin itself. Back in June 2022, when the number of transactions was higher, Bitcoin’s price was around $26,500, resulting in a total transaction value of roughly $14 billion. However, on May 28th, 2024, with a price of approximately $69,374 per BTC, even a lower number of transactions translated to a much higher total value.
Trading Activity Remained Normal
Other metrics also suggest that this wasn’t a major surge in overall Bitcoin activity. Bitcoin transaction tracker Y Charts recorded a total of around 596,790 transactions on May 28th. This number falls within the average range compared to the preceding and following days, which saw over 700,000 and 850,000 transactions, respectively.
Similarly, Bitcoin’s trading volume on cryptocurrency exchanges, as reported by Blockchain.com, remained unremarkable at around $200 million on May 28th.
A Bullish Forecast for Bitcoin?
Despite the lack of a major uptick in activity, some analysts remain optimistic about Bitcoin’s future. Trading analyst Peter Brandt recently predicted that Bitcoin could reach $130,000 by 2025.
Brandt believes Bitcoin’s current price movements share similarities with historical post-halving cycles. Based on this analysis, he suggests that Bitcoin could potentially climb to a range of $130,000 to $150,000 by August or September of next year.
His reasoning hinges on the historical observation that Bitcoin’s halving events often coincide with the middle ground between the beginning and peak of bull markets. Brandt points out that the last bull market started roughly 16 months before the 2020 halving and ended approximately 18 months after.
