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Bitcoin Outpaces VISA, Mastercard with $46.4B On-Chain Volume

Bitcoin Outpaces VISA, Mastercard with $46.4B On-Chain Volume

DailycoinDailycoin2024/07/18 18:52
By:Dailycoin
  • The flagship crypto asset tussles with credit card giants by volume.
  • On-chain intelligence platforms report a huge monthly drop in holders.
  • Long liquidations soar despite Bitcoin inking double-digit gains in 7 days.

As traditional finance continues to embrace cryptocurrency via hybrid products, such as Bitcoin exchange-traded funds (ETFs) or crypto debit cards, the leading digital asset will become as demanded as the most established credit and debit card providers.

BTC, the bellwether asset of the crypto economy, has massively spiked in trading volume. This has put Bitcoin in the same class as Mastercard and Visa, the two largest credit and debit card issuers worldwide.

Bitcoin Hems $46.4B, But There’s Room to Grow

Since 2023, Bitcoin has enjoyed a steady uptick in Spot trading volume, bringing it toe to toe with Visa and MasterCard. The traditional payment giants boast daily transaction volumes of $38.9b for Visa and $24.7b for MasterCard, but as of July 18, 2024, both are eclipsed by BTC, which weighs in at $46.4b as of press time.

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Visa’s unfiltered transaction volume is $38.9 billion per day, while Mastercard’s is $24.7 billion.

#Bitcoin currently sees around $46.4b in on-chain volume daily, comparable to traditional payment processors like Visa and Mastercard. Filtered economical transfer volumes are closer to $6.5b per day.

More insights from our report with @CMEGroup → https://t.co/SG2XESASGe pic.twitter.com/ZD7t1dkMsD

— glassnode (@glassnode) July 17, 2024

Despite ousting the two popular card providers, Bitcoin is still netting a considerably lower trading volume than that of gold or the SPX stock market index. Gold and the SP 500 garner approximately $162.6 billion and $253 billion per day, according to data from Glassnode.

Bitcoin’s Sharp Holder Drop: Bullish or Bearish?

The latest on-chain stats from Santiment, a blockchain intelligence platform, suggest a concerning trend. In comparison to last month, Bitcoin’s holder count has been slashed by 672,510.

👋 Bitcoin's amount of holders (any wallets with >0 coins) have been dropping aggressively as traders still seem to believe the March ATH was as good as it's going to get in 2024. When we see mass liquidations like this, the probability of a continued rebound only increases. pic.twitter.com/YTHEFTtfhY

— Santiment (@santimentfeed) July 17, 2024

At 53.84 million, Bitcoin’s holder stats hint at the average trader’s belief that BTC won’t repeat the bull cycle peak price of $73,097.77 this year. Accomplished in March 2024, the flagship digital asset traded sideways since the milestone and is currently 12.3% behind the all-time highs set on March 14, 2024.

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“When we see mass liquidations like this, the probability of a continued rebound only increases,” explains Santiment on X. Some traders responded to the sharp drop in BTC holders with a similar explanation: that the crypto enthusiasts leaving BTC are aping into the altcoin season.

While this shifting sentiment is tangible due to the crypto fear and greed index turning the tables completely in four days, Bitcoin’s lowering holder count isn’t necessarily bearish. As the altcoin market is more attributable to risk and price fluctuations than Bitcoin, investor sentiment shifted from 25, indicating strong fear, to 69, hinting at substantial greed.

This is insane! The Crypto Fear Greed Index just had it's fastest reversal in more than a year!

From Fear (25) to Greed (69) in just 4 days! pic.twitter.com/N3uwgV1rIP

— ChiefraT (@ChiefraFba) July 17, 2024

According to IntoTheBlock’s ownership stats, BTC saw steady growth in HODLers, or cryptocurrency investors who have held their assets for more than a year. With an all-time high of 37.67 million long-term holders set in July 2024, Bitcoin’s loss of holder count mostly comes from traders, classified as accounts that hold BTC for up to one month.

On The Flipside

  • While Bitcoin’s price grew by 11.3% over the most recent 7-day period, BTC recorded twice as many long-position liquidations as short ones.
  • To illustrate, according to real-time data from CoinGlass, BTC’s movement triggered $23.57M in long liquidations and $12.65M in shorts in a 24-hour window.

Why This Matters

The rising transaction volume ascribes Bitcoin to the same asset class as gold, as BTC can be utilized as both a long-term investment and a means of transaction.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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