Bitcoin's velocity offers crucial insights into its economic role—essentially revealing whether it serves as a speculative medium or a store of value. Recently, this measure has plummeted to levels last seen over a decade ago, coinciding with the US Presidential elections. However, despite this decline, Bitcoin's price skyrocketed past $101,000, setting a new all-time high. What external factors might be fueling this explosive price rally in the face of reduced on-chain activity? Discover how institutional demand and other market forces are reshaping Bitcoin's dynamics...
Bitcoin velocity hits 12-year low as institutional demand drives up price Bitcoin velocity hits 12-year low as institutional demand drives up price
Despite reaching an all-time high, Bitcoin’s velocity continues to drop, signaling a new era of institutional accumulation.
3 min read
Updated: Dec. 11, 2024 at 1:53 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
