Glassnode Weekly Report: Bitcoin Transfer Volume Plummets 32% in May, Is Market Trading Enthusiasm Diminishing?
According to the latest on-chain weekly report from Glassnode, the "total transfer volume" indicator for Bitcoin reached a high of $76 billion at the end of May, but then quickly fell to $52 billion, a decrease of nearly 32%. As a core indicator that reflects the actual transaction scale of the blockchain, the continued decline of this data may suggest that market participation enthusiasm is cooling down.
From the chart, this is clearly not the first time in this cycle that the total transfer volume has experienced such a significant spike followed by a retreat. After the previous two similar situations, Bitcoin underwent consolidation/downturns. Currently, the price of Bitcoin is around $107,000, failing to maintain last week's 3.5% weekly increase, and the current slowdown in Bitcoin's price rising trend may partly be due to the decrease in transfer volume.
In the cryptocurrency market, total transfer volume is a key indicator of network transaction activity. In particular, the spot and futures markets, as the main concentration of economic activity, have a particularly significant impact on this total.
Analytics company Glassnode points out that despite a recent increase in Bitcoin market prices, the trading volume in the spot market has not increased correspondingly. This phenomenon is different from previous upward trends and shows a weakening of market speculative interest and hesitancy.
Meanwhile, although participants in the futures market remain active, futures trading volume has also begun to decline, indicating that the entire market may be experiencing a cooling period. In summary, these two changes may also affect the short-term price trend of Bitcoin.
What are your thoughts on the decline in Bitcoin transfer volume and the diminishing market trading enthusiasm? Given this phenomenon, would you adjust your investment strategy?
