Bitcoin Transaction Volume Soars to $37.4B: What’s Driving the Surge?

• Bitcoin sees $37.4B spike in single-day on-chain transactions, highest since March 12.
• Dormant Bitcoin reenters the market, signaling potential bullish momentum ahead.
• Whale activity suggests possible price swings, with $65K resistance level being crucial.

Bitcoin saw a big surge in on-chain transaction volume, with $37.4 billion worth of transactions happening on Tuesday. This is the highest on-chain volume since March 12, 2024. The spike, according to data from Santiment and Lookonchain, was caused by dormant Bitcoin coming back into circulation, especially from whales.

The increase in transaction volume happened at the same time as a notable age-consumed spike. This indicator suggests that older, inactive Bitcoin holdings are being transferred. One transfer came from Binance, where $15.6 million worth of Bitcoin moved into circulation. This activity often signals significant market shifts, as long-held Bitcoin tends to influence future price movements.

Dormant Bitcoin Returning to the Market

Historically, when inactive BTC coins come back into circulation, it could mean a shift is coming in the market. This increase shows a large amount of Bitcoin entering the market, meaning whales are now active. This has been used as a signal for price increases in the past. BTC has been relatively stagnant trading close to $62,000, with lots of support and resistance within that range.

Source: Coinmarketcap

Analysts are closely observing the Bitcoin price as the market gets ready for potential volatility. Specifically, the $65,000 has been seen as a key level of resistance. If it breaks through this, then Bitcoin can see more significant price swings. On the other hand, if the current support level is breached, the BTC price target will likely retest the mid-$50,000 range.

Implications of Whale Activity

The surge in Bitcoin’s on-chain transaction volume suggests that whales are important again. Whale activity often happens at the same time as significant price swings. While increased activity doesn’t always mean a price rise, it shows potential shifts in market dynamics.

In the past, large volumes of Bitcoin moving back into circulation have brought bullish momentum. Traders and analysts are watching to determine if this latest influx will keep pushing prices up or if the market will correct. The price movements in the coming days will tell us more about where Bitcoin is heading.