Recent analysis reveals significant changes in transaction activity on the Bitcoin blockchain, with institutional investors increasingly influencing the market.
Decline in Transaction Activity
The number of daily Bitcoin transactions has declined from a peak of 734,000 in 2024 to a range between 320,000 and 500,000. However, the total value transferred remains high, averaging $7.5 billion daily.
Impact of Institutional Investors
According to Glassnode, 89% of transaction volumes now come from trades over $100,000. This indicates the dominance of institutional and high-net-worth investors on the Bitcoin platform. Despite Bitcoin trading just 6% below its all-time high of $111,700, transaction fees remain low.
Growth in Derivatives Market
Open interest across futures and options markets has reached $96.2 billion, signaling a rise in leveraged trading activity. The quality of collateral has improved, with stablecoin-backed positions now representing the majority, enhancing market health.
Thus, a significant shift toward institutional control over the Bitcoin market is observed, possibly providing more stability and attracting interest from high-net-worth investors.
