Bitcoin
Mid-sized Bitcoin transactions surge, reflecting market maturity and retail growth
Highlights in the chain
DEFINITION: Distribution of relative volume in the chain adjusted by the entity by the USD value of transfers.
Bitcoin’s relative transfer volume, when adjusted by entity and categorized by transfer size, exhibits differentiated trends across transaction ranges. In January 2024, transfers under $1,000 constituted a smaller portion of overall activity. Notably, transactions between $1,000 and $10,000 experienced a slight increase, reflecting incremental retail participation.
Transfer volume breakdown by size: (Source: Glassnode)
Larger transfers, ranging from $10,000 to $100,000 and $100,000 to $1 million, showed an increase, holding around 20-30% of the total volume. This suggests an increase in institutional activity. Meanwhile, the $1 million to $10 million range also showed growth, while transfers above $10 million decreased.
Between mid-January and April, volumes above $10 million resurfaced before falling, reaching a low in May.
Levels of major transfers rose again at the end of May and have stabilized since then. Other bands moved relatively, with the exception of transfers below US$100,000, which maintained stability.
Compared to historical data since 2017, the past year has seen a reduction in the dominance of smaller transactions, replaced by medium-sized volumes, especially those above $100,000. This shift highlights a maturing of Bitcoin’s user base, with an increasing reliance on significant transactions, potentially in line with post-halving market conditions and a mature institutional footprint.