According to recent data from Intotheblock, an on-chain analytics firm, Bitcoin’s transaction activity surged to its peak on May 1, 2023, only to sharply decline thereafter. This decline aligns with the current regulatory pressures observed in the market, which have led to reduced volatility, volume, and realized value.
Based on the data, when Bitcoin reached its all-time high of $65,218 on November 8, 2021, the number of transactions stood at 280.09k. However, according to recent data from Intotheblock, on May 1, 2023, when Bitcoin was trading near $28,510, the number of transactions reached a new all-time high of 682.28k. This surge included 933.81k active addresses, 422.88k addresses with zero balance, and 443.43k new addresses being generated.
Analyzing the data provided by Intotheblock, we can see that out of the 682.28k transactions, 2.79k transactions fell within the range of $1 million to $10 million, while 12.03k transactions fell between $100k to $1 million. The majority of transactions, amounting to 359.56k, were made within the range of $0.00 to $1.00.
Currently, Bitcoin is trading approximately 5% higher than when it experienced the highest number of transactions. Recent data reveals that on June 30, when Bitcoin was trading at $30,440, the number of transactions dropped to 445.2k. This decrease in transaction volume corresponds to 1.06 million active addresses, 521.8k addresses with zero balances, and 494.4k new addresses generated.
It is evident that a significant decline in transactions has occurred. Furthermore, out of the 445.2k transactions, 4.5k were made within the $1 million to $10 million range, and 13.03k fell between $100k to $1 million. The highest number of transactions, amounting to 145.48k, were made within the $0.00 to $1.00 range.
This substantial decline in transactions could be attributed to the regulatory pressures that the market is currently facing. As mentioned in the Glassnode report, Bitcoin’s volatility, volume, and realized value have reached multi-year lows.