- There was a surge in BTC balance on the Binance exchange.
- Last week, the king coin posted a gain of 7.34%, although it struggled to break through the $30,000 mark.
Bitcoin [BTC]’s network activity exploded since the beginning of 2023 as it recovered from the lows of the 2022 bear market. According to a research analyst, the number of daily transactions on the network was on the verge of hitting the highest level since the December 2017 bull market. A major factor fueling this exponential growth was the growing activity around BTC Ordinals.
The number of daily Bitcoin transactions is on track to reach the highest level since December 2017
Daily $BTC transactions have almost doubled since the launch of Bitcoin Ordinals in January 2023 pic.twitter.com/FBZIrhdnQR
— Lucas (@LucasOutumuro) April 28, 2023
At the time of writing, BTC traded hands at USD 29,342, with a marginal 24-hour decline of 0.28% per CoinMarketCap. Last week, the king coin posted a gain of 7.34%, although it struggled to break through the $30,000 mark.
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Growing interest in the crypto market
Blockchain analytics company Glassnode revealed a sharp increase in BTC balance on the Binance exchange over the past month. Among other things, this behavior implied a growing interest in risk-based assets in the market.
The spate of banking collapses in March led investors to put their money in the crypto market and see BTC as a hedge against traditional finance. The king coin rose 21% in March to hit the $28,000 mark for the first time since June 2022.
As another high-profile banking entity, Bank of the First Republictails to a doom, the crypto market in general and BTC in particular would hope to attract disgruntled investors from traditional markets.
Source: Glassnode
The exchange supply of BTC
The spike in balance on Binance was not yet a worrying sign, as there was a noticeable divergence between BTC supply on exchanges and beyond. This indicated that investors preferred to hodl their coins rather than dump them.
Source: Sentiment
The exchange Whale Ratio is the relative size of the top 10 inflows to total inflows, according to CryptoQuant. During the bull market, it typically stays below 85%.
At the time of writing, 39% of total inflows came from large addresses, reflecting optimistic sentiment for BTC.
Source: CryptoQuant
How much are 1,10,100 BTC worth today?
BTC on the derivatives market
Speculative interest in BTC increased as the Open interest (OI) for BTC futures was up 8% over the past two days to $11.81 billion.
However, funding rates on some exchanges turned negative, indicating growing dominance for traders with bearish leverage.
Source: Coinglass
