Recent reporting by Cointelegraph shows that Bitcoin (BTC) spending has retraced since March 9 amid the worsening coronavirus pandemic. Data from blockchain analytics firm Chainalysis also shows that even the amount of Bitcoin spent on illicit activities through darknet marketplaces is down from pre-coronavirus levels.
Despite the reduction in transactions, traders still view the current prices as a good investment opportunity and data from glassnode shows that the number of Bitcoin whales holding at least 1,000 BTC has risen to its highest point in more than 2 years. This shows that investors are still feeling bullish about Bitcoin’s future prospects and with the halving only 31 days away it is useful to analyze trading volume and transaction patterns.
Number of transactions drop to October 2018 levels
Bitcoin transactions are down from March 12 when Bitcoin’s price lost more than 50%. Current daily volume mirrors October 2018 levels at around 281,700 daily transactions. At the same time, the amount of daily Bitcoin sent from unique addresses has faced a 43% pullback, while the average Bitcoin transaction fee is down to $0.503.
Daily transactions from October 2018 – April 2020. Source: Bitinfocharts
This shows that the uncertainty around Bitcoin’s bullish scenario amid the global economic meltdown caused by worldwide quarantines is causing investors to act with more caution.
Volume grows significantly on Mondays
Historically speaking, data analysis indicates that Bitcoin’s volume faces a significant dump on Saturdays and shows the highest growth on Mondays.
Even though the degree of growth differs between 2017 and 2019, the consistency of the daily average volume rise leaves little room for doubt. On Mondays, Bitcoin’s volume grew by 19% in 2017, by 9.4% in 2018 and by 10.4% in 2019.
In a contrasting scenario, the maximum daily losses in Bitcoin’s volume materialize on Saturdays, with transactions dipping between 7.4% and 17.7%.