Bitcoin, as the world’s leading cryptocurrency, has very high expectations to live up to. Even though its price momentum isn’t spectacular, there are some new peaking metrics. Unfortunately, it appears those metrics will keep triggering even more volatility in the weeks to come.
Short-term Bitcoin Outputs Get Spent Quicker
It is not uncommon to see Bitcoin users transfer money to and from their wallet address regularly. More often than not, users will often receive money and wait a few days before spending it. However, things have recently changed, as is apparent when looking at spent outputs with a shorter lifespan. More precisely, the Bitcoin outputs less than 1 hour old are being moved across the network much quicker.
Per Glassnode, there is a new three-month high for spent outputs with a lifespan of under 1 hour. A bit of a surprising development, as this metric has recently seen a significant decrease in activity. Since late April, that momentum has picked up again, even though the Bitcoin price has remained stuck in sideways trading momentum for the most part.
Following this sudden spike, the Bitcoin outputs with a short lifespan metric have risen to 8,767 transactions. Not an insurmountable amount gave the constant Bitcoin network activity taking place. However, the increase from just under 6,000 to this level in such quick succession seems a bit strange. A near 33% increase in low lifespan spent outputs in less than two weeks can lead to more market volatility.
That being said, an increase in spent outputs doesn’t have to mean anything. There may be a bunch of new Bitcoin users who are moving funds around through their wallet. Additionally, many people have to convert BTC to fiat regularly to pay bills. There is a chance this is just a coming together of many different factors, rather than a clear intent to keep the BTC price.
Bitcoin Exchange Deposits Spike
What is rather worrisome for BTC price enthusiasts is the sudden increase in exchange deposits. Although there are regular peaks and lows for this metric, a new one-month high has been recorded today. With a seven-day moving average of 3,174.119 deposits, things are bound to get rather interesting. An increase in deposits is often a sign of increasing market volatility.
What is interesting is how this new one-month high came to be. Over the past few weeks, there have been several increases in deposits. However, that trend often quiets down after a few days. In the past week, there has been an influx of deposits without missing a beat. Why that is exactly will always remain a matter of debate and speculation.
For Bitcoin, the big hurdle to overcome is that $60,000 level. It is interesting to see how the market responds every time the price nears this value again. Numerous rejections have taken place, and it seems unlikely that situation will change suddenly. The bigger question is how the alternative markets will respond to this “weakness” by the world’s leading cryptocurrency. Another interesting week looms ahead, by the look of things.