On June 11, Bitcoin experienced a remarkable increase of $110,000, marking a significant milestone that has re-ignited bullish sentiment throughout the cryptocurrency market. This latest surge has prompted many market participants to speculate that Bitcoin, as the leading cryptocurrency, may be poised for a move toward new all-time highs in the near future.
However, contrary to these bullish predictions, data from the market indicates a different reality.
On-Chain Apathy and Record-Low Spot Volume
According to the latest analysis from CryptoQuant, the Bitcoin network is exhibiting signs of a “ghost town.” The on-chain analytics platform reports a dramatic decline in both on-chain and spot market activity, with Bitcoin’s Network Activity Index plummeting to just 3.47k, which is one of the lowest levels encountered in the last 18 months.
Retail demand appears to be waning as well, with on-chain transactions involving amounts below $10,000—often used as a metric for gauging retail participation—dropping by more than 5%.
In addition, spot trading volume on centralized exchanges has reached a 4.5-year low, at levels reminiscent of October 2020. CryptoQuant notes that actual Bitcoin is barely shifting, both on-chain and across exchanges, even as exchange-traded fund (ETF) demand remains relatively stable.
Despite this pronounced stagnation in visible activity, a notable shift is occurring as a total of 847,200 BTC has moved into the long-term holder supply, indicating that these coins are being accumulated rather than traded. Many of these holdings have remained untouched for over 155 days, echoing similar accumulation patterns observed in late 2024.
Ethereum Futures Heat Up
Although Bitcoin’s spot and on-chain metrics reflect a quiet market, the derivatives sector is telling a contrasting story, particularly regarding Ethereum. The open interest in ETH futures has surged to a record 7.17 million ETH, and retail trading frequency on these platforms has exceeded its one-year average.
This suggests a significant shift in investor focus from spot markets to futures, notably among retail participants. While surface-level data indicates a stagnant and subdued Bitcoin network, a deeper analysis reveals a market in a waiting phase, characterized by long-term conviction among holders and burgeoning speculative interest in the derivatives arena.
At present, while Bitcoin may appear deserted, CryptoQuant suggests that this could simply represent the calm before a major market movement—a silent buildup prior to the return of volatility.
This post Here’s Why the Bitcoin Network Feels Like a Ghost Town Despite the $110K Recovery originally appeared on CryptoPotato.
