Market in wait-and-see mode as Bitcoin volumes stagnate

Tracking and analyzing transfer volumes is crucial for understanding the underlying economic activity within the Bitcoin network. Spikes in transfer volumes show heightened market participation, either from new entrants and institutional investors — usually during bull runs — or significant transactions by existing participants — usually during downturns.

While spikes in transfer volumes usually come after major price movements and aren’t good predictive tools for price action, they can still be used to infer the levels of liquidity and potential future volatility in the market.