Bitcoin transaction volume drops by more than 50% within a week

There has been a significant decrease in the total number of Bitcoin transactions over the past week. From September 8 to September 11, the number dropped from 909,000 to 412,000, indicating a cooling off in the market.

This sharp decline correlates with a noticeable decrease in network activity, likely influenced by an overall reduction in trading volume following a period of saturation. However, the total number of transactions rebounded to around 712,000 by September 15, indicating that Bitcoin’s surge above $59,000 reignited some previously stagnant trading volume.

The total number of tokens transferred also saw a decline, dropping from 1.39 million on September 8 to 548,518 by September 15. This decrease suggests a reduction in large-scale transfers, hinting at a shift away from institutional activity or decreased market liquidity. The data indicates a phase where market participants were less involved in high-volume transactions.

Further analysis of the mean and median number of tokens transferred per transaction supports this observation. On September 8, the median stood at 0.0008 BTC, with a mean of 0.594 BTC. The lower median suggests that while most transactions were small, a few high-value transfers dominated the market.

The spike in the mean to 3.032 BTC on September 11 indicates a period of significant transactions, likely driven by institutional players or large investors. By September 15, the mean dropped to 0.820 BTC, while the median remained low at 0.0003 BTC, signaling a return to more typical trading activity and a decrease in large-scale transfers.

Overall, the data paints a picture of a market characterized by intermittent surges of large transactions, followed by periods of reduced activity, reflecting the influence of major players on market sentiment despite consistent engagement from retail and small-scale traders.