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<p class="is-style-lead">Bitcoin&#8217;s (<a href="https://crypto.news/price/bitcoin/">BTC</a>) mean transaction volume has surged to a high of 2.051 BTC, its highest value in the past month.</p>



<p class="is-style-default">This notable increase in transaction volume coincides with the recent dip in bitcoin&#8217;s price, as the asset recently plummeted below the $27,000 mark. </p>



<p>In a recent tweet, Glassnode, a prominent on-chain analytics platform, drew public attention to this metric. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">📈 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$BTC</a> Mean Transaction Volume (7d MA) just reached a 1-month high of 2.051 BTC<br><br>View metric:<a href="https://t.co/Hd8nLuqmlZ" target="_blank">https://t.co/Hd8nLuqmlZ</a> <a href="https://t.co/xfZgpgo0Od" target="_blank">pic.twitter.com/xfZgpgo0Od</a></p>&mdash; glassnode alerts (@glassnodealerts) <a href="https://twitter.com/glassnodealerts/status/1664153694638596101?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 1, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>The mean transaction volume, represented by the seven-day moving average, provides valuable insights into the overall transactional activity within the bitcoin network. It indicates the average amount of BTC being transacted over a given seven-day period, highlighting the level of economic participation within the ecosystem.</p>



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<p>According to Glassnode, bitcoin&#8217;s transaction volume started observing a persistent decline since hitting a high above 3.5 BTC in mid-April. Volume continued to drop until it eventually plummeted below the 2 BTC mark on May 1.</p>



<p>The decline in transaction volume coincided with a prevailing downtrend in which BTC&#8217;s price was caught. Upon hitting the lows below 1.5 BTC in mid-May, transaction volume started registering an uptick as the asset&#8217;s price staged a comeback to pause the downward slope.</p>



<p>This sustained uptick has brought transaction volume back above the 2 BTC mark at the reporting time. However, BTC&#8217;s comeback against the bears has been rather epileptic, as the asset has <a href="https://crypto.news/data-suggests-bull-run-for-bitcoin-despite-the-price-decline/">failed</a> to solidify its position above the $27,000 threshold.</p>



<p>While a surge in transaction volume may indicate increased market activity, it doesn&#8217;t guarantee a direct impact on BTC&#8217;s price. However, it is worth considering that higher transaction volume can lead to increased liquidity as more bitcoin is changing hands. This increased liquidity may have a positive effect on market efficiency.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="1138" height="603" src="https://crypto.news/app/uploads/2023/06/BTC-price-June-1.png" alt="Bitcoin transaction volume hits monthly highs as coin drops below $27k - 1" class="wp-image-14164275"><figcaption class="wp-element-caption">BTC price &#8211; June 1 | Source: Trading View</figcaption></figure>



<p>Meanwhile, BTC is trading for $26,871, down 0.89% in the past 24 hours. The asset has registered three consecutive losing candles since May 29. This losing streak followed an impressive 4.51% intraday gain on May 28, which led to the reclamation of the $28,000 price territory.</p>



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Bitcoin transaction volume hits monthly highs as coin drops below $27k

crypto.news

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