Average Daily Spot Trading Volume on Centralized Exchanges Hits October 2020 Levels

Bitcoin spot trading on centralized exchanges has reached a four-year low, indicating a trend towards long-term accumulation among investors.

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Summary

According to CryptoQuant data, Bitcoin spot trading on centralized exchanges has fallen to its lowest point in over four years, mirroring levels from October 2020. Analyst Axel Adler Jr. attributes this decline to a growing trend of long-term accumulation, as investors adopt a buy-and-hold strategy, or HODLing. Additionally, Bitcoin's on-chain activity shows historic lows in transaction fees, currently costing less than $1.50. This shift suggests that Bitcoin is evolving from a medium of exchange to a stronger store of value amid increased institutional adoption.

Terms & Concepts
  • HODL: A misspelling of 'hold,' referring to a long-term investment strategy where investors refrain from selling their assets.
  • on-chain activity: Transactions or movements of cryptocurrency that occur on the blockchain, reflecting user engagement with the network.
  • CEX (Centralized Exchange): A platform where cryptocurrency trading is facilitated by a centralized organization, contrasting with decentralized exchanges.