Bitcoin hit a local high of $60,100 earlier in the day before hovering around $58,894 at last check on Sunday.
The leading cryptocurrency is up for the third day in a row, but is still in a consolidation phase.
Bitcoin (BTC) daily trading volume has dropped by 42% and is currently hovering around $14.7 billion.
When the trading volume of an asset decreases, it is usually a sign of calming down and lower price volatility.
According to data provided by Santiment, Bitcoin’s five-year dormant trading is currently at 104 BTC, one of the lowest levels we’ve seen this year.
It is worth noting that this metric rose to 16,592 BTC on July 23 when the price of Bitcoin was hovering around the $66,000 level.
Moreover, the asset’s one-year dormant trading has dropped from 6,040 BTC on August 15 to 1,412 BTC at the time of reporting.
A dormant trading decline often indicates profit taking by long-term Bitcoin holders and typically increases during high price points. At this point, long-term Bitcoin holders have either made profits or gone back to sleep.
According to data from Santiment, the number of whale transactions with at least $100,000 worth of BTC has been steadily decreasing over the past three days — dropping from 9,295 on August 15 to 5,309 unique transactions at the time of reporting.
Decreased whale activity often leads to reduced asset price volatility as token holders anticipate less opportunity for whale price manipulation.
According to a report by crypto.news on August 17, Bitcoin ETFs in the United States closed the week with net inflows of over $36 million. This was one of the main reasons behind the bullish sentiment around Bitcoin that helped it reclaim the $59,000 level.
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