Bitcoin velocity hits lows last seen before Q4 2020 BTC price breakout

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Bitcoin velocity hits lows last seen before Q4 2020 BTC price breakout
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Bitcoin velocity is at multiyear lows, with the BTC supply last this dormant before breaking out past $20,000.

Bitcoin on-chain activity is at levels last seen before its run to 2021 all-time highs, data shows.on Aug. 25, Ki Young Ju, CEO of analytics platform CryptoQuant, revealed multiyear lows in Bitcoin velocity.Bitcoin is becoming increasingly static at current price levels — with an overall BTC price trend absent for months, the impetus to buy or sell is reduced.

Underscoring this status quo is velocity, which is a measurement of BTC units moving around the network. According to CryptoQuant, on daily timeframes, the metric is now at levels last seen in October 2020.“It can be seen as positive since whales are holding onto it, or negative since it’s not being transferred to new investors.”Ki referred to a similar absence of major trading activity among high-volume investors — part of a narrative that states that

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