Bitcoin: THESE reasons show why you should consider HODLing BTC

Bitcoin trading volume on CEXs drops to 2020 levels.
BTC investors have taken a step back and shifted to holding their coins.

In a rather exciting turn of events, Bitcoin [BTC] is doing its best impersonation of a tired old accordion player taking a much-needed break. Yes, the grand tale of consolidation continues, and on-chain activity is far less energetic than a sloth on a lazy Sunday.

Axel Adler, CryptoQuant’s resident analyst, has pointed out that the average Spot Trading Volume on centralized exchanges has dropped to levels last seen in October 2020. Now, if that doesn’t scream “market in chill mode,” I don’t know what does.

The drastic drop in volume paints a picture of reduced trading activity, with speculation about as scarce as a unicorn sighting in a supermarket. It seems that everyone’s gone quiet, holding their breath (and their coins) while waiting for the next big thing.

And just when you thought things couldn’t get more dramatic, active user participation is following suit. Active Addresses have taken a nosedive, falling to a monthly low of 779.8K. Is this a sign of the end of Bitcoin’s golden days? Or just a market in desperate need of a coffee break?

Historically, such eerily quiet periods are either the calm before the storm or the deep breath before a long winter of consolidation. And right now, it seems that market participants are sitting on their hands, waiting for the perfect moment to make a move. Exciting, right?

According to Adler’s keen eye, the market has now entered a phase of HODLing. That’s right, folks—very few coins are being sold on spot or moved on-chain. It’s like Bitcoin investors have taken a vow of silence in the face of short-term fluctuations. Bravo!

The rising Mean Coin Dollar Age is the smoking gun here, surging to 18.03 million. This sharp increase indicates that coins are getting older than your grandma’s favorite knitting sweater—sitting there, untouched, just waiting for the right moment to shine. It’s strong holding behavior at its finest, and I dare say it’s a lesson in patience.

In the meantime, trading volume continues to drop, and investors seem content to keep their assets locked up like a vault. If you’ve been paying attention, this was eerily similar to 2020, when trading volumes fell off the map before we saw a shiny new rally in 2021. So, is history about to repeat itself? Place your bets.

What’s next for Bitcoin?

As we’ve established, Bitcoin is currently experiencing a lull, where indecisiveness reigns supreme like a child at a buffet. Exchange activity has plummeted, with the Fund Flow Ratio taking a nosedive over the past week. Ouch.

With exchange activity drying up, Bitcoin is entering a phase of low volatility. Picture the market as a tightrope walker, balancing on a wire, waiting for some outside force (like, say, an impulsive tweet) to push the price one way or the other.

Low trading activity often precedes a burst of volatility, especially after long periods of accumulation like the one we’re witnessing now. The big question is: Will Bitcoin trade sideways before a mighty upward surge? Who knows? What I do know is that BTC could hover between $104K and $107K in the short term before heading toward a breathtaking $109,208.

But, wait, there’s a plot twist! If market sentiment suddenly shifts from HODLing to selling, this dream of a bull run might just fizzle out like a soda left open on a hot summer day. In that case, BTC could retrace to a humble $101,500 as the bears take over the dance floor.

2025-06-09 20:13

What’s next for Bitcoin?

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