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Bitcoin Spot Volume Rivaled 2021 Bull Market In March: Glassnode

Andrew Throuvalas
Last updated: | 2 min read
Binance discontinues Bitcoin Ordinals trading

This year’s massive crypto rally was driven by the Bitcoin spot market, with on-chain analysis offering a unique look into the current state of the market cycle, according to Glassnode’s Tuesday report.

Bitcoin Spot Volume: Now Versus 2021


Glassnode noted that spot volumes peaked at $14.1 billion in March, similar to levels seen at “the height of the 2020-2021 bull market.”

“Those volumes have since cooled to about $7 billion per day in April,” the report stated.

Similarities to the 2021 bull run are also visible when applying a fast/slow momentum indicator to spot volume. As of April 6, Bitcoin’s 30-day moving average for volume was $9.59 billion – substantially higher than its 180-day volume average of $5.95 billion.

In fact, net exchange flows – inflows plus outflows from Bitcoin exchanges – are now higher than in 2021, reaching $8.19 billion per day.

“Overall, Bitcoin’s YTD price action is supported by a significant uptick in spot trade volume, and exchange flows on-chain,” Glassnode wrote.

According to a separate analysis this week by lead Glassnode analyst James Check, spot ETFs now account for about 30% to 50% of the major forces affecting Bitcoin’s spot price.

The substantial effect of Bitcoin ETFs on spot trading is visible on weekends the newly launched funds don’t trade then, and on-chain spot volumes are “notably lower” as a result.

Also, like in 2021, exchanges have had a considerable taker-buy volume bias, with their spot volume delta against maker-sell volume reaching $143.6 million last month. This starkly contrasts the net sell side bias that exchanges experienced throughout 2023 until October, despite Bitcoin’s price experiencing some pullbacks during that time.

The State Of The Bitcoin Cycle Today


Looking at Bitcoin’s price, the coin only recently broke its 2021 all-time high of $69,000 in March and has consolidated close to that peak ever since. Based on prior all-time high breaks, Bitcoin has seen minimal major pullbacks, indicating that the bull market’s current “euphoria” phase is still in its early stages.

Additionally, capital invested by short-term holders (less than 6 months) reached peaks of between 84% and 95% in the last two bull cycles based on Bitcoin’s “realized cap” – a measure of the value of all coins in the network based on the time that each coin last moved.

Today, that figure is 47% much higher than the 20% it was in January, but not quite at market peak levels.

“This suggests that the capital held within the Bitcoin holder base is roughly balanced between long-term holders and new demand,” Glassnode wrote.