Bitcoin Spent Volume at Historic Lows
• Old and Young Bitcoin spending volumes have hit extremely low levels.
• Younger coins historically represent the majority of day-to-day transaction volume.
• Spikes in Old / Young spent volume ratio generally occur during bullish fervor.
Analysis of Bitcoin Spend Volume
The aggregate spent volume of both the Old (> 6m) and Young coin (< 6m) supply, as well as the Old / Young Spent Volume Ratio (%), are all at historic lows. This indicates a lack of activity in terms of liquidity and investor sentiment. Younger coins, which typically represent the vast majority of day-to-day transaction volume, are currently spending roughly 167K BTC - the lowest level for five years. Meanwhile, older coins are also not being spent in relation to history - with only 10k BTC spent over seven days.
Old vs Young Coin Spend Volume
The old-to-young spend volume ratio % spiked during the FTX collapse – indicating capitulation – and is currently descending to a rough average of the past five years. This suggests that previously dormant supply is re-entering liquid and active supply, potentially shifting aggregate positioning by longer term holders.
Implications on Crypto Market
The lack of liquidity in terms of both old and young coin spending could ultimately have far reaching implications on the crypto market, depending on how long this situation persists for. It may indicate a lack of confidence from investors or simply that there is no need for them to actively trade or move their funds at present time.
Overall, it appears that Bitcoin’s spend volumes are currently at historic lows across both old and young coins alike, suggesting potential shifts in investor sentiment or simply a general lack of need for traders to be active in moving their funds around at present time.