Bitcoin Data Report: August 2024
Oxido Solutions uses a data-driven approach, which is reflected in our Bitcoin trading bot solutions built on technical analysis. To keep ourselves and you informed about the latest data trends in the world’s top cryptocurrency, we’ve put together a detailed breakdown of the most important BTC data from July, along with our expert insights on what these trends could mean for Bitcoin going forward.
Bitcoin’s Turbulent July: From Peaks to Valleys
July was a month of extreme volatility for Bitcoin. The cryptocurrency began the month at $63,530, surged to a high of $69,697 on July 29, and then took a sharp downturn, ending the month at $66,614. This 28% increase was driven by several key events, including the successful launch of Ether ETFs and notable support from former U.S. President Donald Trump during the Bitcoin 2024 conference. However, early August saw Bitcoin plummet to a six-month low of $51,267, highlighting the market’s sensitivity to macroeconomic factors like the global stock market crash and interest rate hikes.
Bitcoin Benchmark Performance
To put July’s performance in perspective, here’s a comparison of Bitcoin’s performance against various benchmarks, including our own BTC Perp Multi Strategy at Oxido Solutions:
| # | Benchmark | July (%) | YTD (%) |
|---|---|---|---|
| 1. | BTC Perp Multi Strategy Oxido (Low-High Risk) | 4-8 | 42-73 |
| 2. | Bitcoin | 6 | 56 |
| 3. | MV Global Digital Assets Equity Index | 4 | 42 |
| 4. | Coinbase | 1 | 29 |
| 5. | S&P 500 Index | 1 | 16 |
| 6. | Nasdaq Index | -1 | 17 |
| 7. | Ethereum | -4 | 45 |
| 8. | MarketVector Meme Coin Index | -4 | NA |
| 9. | MarketVector Decentralized Finance Leaders Index | -10 | -6 |
| 10. | MarketVector Infrastructure Application Leaders Index | -12 | -17 |
Large Bitcoin Holders Added $5.4B in BTC
In July 2024, large Bitcoin holders added over 84,000 BTC, worth $5.4 billion, marking the highest single-month accumulation since October 2014. This strategic accumulation was driven by bargain hunting during early July’s price dip, with large holders capitalizing on the two-way price volatility. This behavior might indicate confidence in a bullish breakout, as Bitcoin’s price consolidates between $50,000 and $70,000.
Bitcoin ETF Inflows Surge
One of the most notable trends in July was the significant inflows into Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) saw a peak inflow of $526.7 million on July 22, contributing to a broader trend of increasing institutional interest. Despite the market’s volatility, these inflows suggest growing confidence among institutional investors in Bitcoin’s long-term potential. At the end of July, the total net asset value of Bitcoin ETFs stood at $55.1 billion, representing 4.6% of Bitcoin’s total market value.
Network Activity and Miner Revenue
Bitcoin’s network activity surged in July, with transactions increasing by 13% to 19.51 million. The number of active wallets also rose by 12% to 22.43 million, reflecting a growing user base. However, the mining sector faced challenges, with miner revenue dropping from $1.93 billion in March to $951 million in July. This decline in revenue was compounded by an increase in network difficulty, which reached an all-time high of 90.66 trillion on August 1.
Bitcoin Reserves on Exchanges Hit 5-Year Low
Over the past month, starting from July 11, 2024, a staggering 99,308 BTC, valued at $5.96 billion, has been withdrawn from exchanges. Currently, cryptoquant.com’s data shows that centralized exchanges are holding 2,679,880 BTC, worth approximately $161 billion based on bitcoin rates as of Sunday, Aug. 11. The last time reserves were this low was during the bitcoin bear market on Nov. 19, 2018.
The State of Bitcoin NFTs and Layer 2 Solutions
Bitcoin-based NFTs saw a sharp decline in July, with sales plummeting nearly 50% from the previous month to $77.3 million. This downturn follows an April peak of $708 million, indicating a cooling interest in this segment of the market. On the other hand, despite the rise of Layer 2 solutions, Bitcoin itself continued to dominate, processing over 90% of all transactions on the network in July.
Institutional Moves and Market Impact
July also saw significant moves from institutional players. Fidelity International launched its Bitcoin exchange-traded product (ETP) on the London Stock Exchange, while Coinbase partnered with DigitalX to offer a Bitcoin ETF in Australia. Additionally, the State of Michigan Retirement System disclosed owning 110,000 shares of the ARK 21Shares Bitcoin ETF, underscoring the growing trend of pension funds investing in Bitcoin.
Final Thoughts
July 2024 highlighted intense market volatility, significant institutional investments, and strategic moves by large Bitcoin holders. The withdrawal of Bitcoin from exchanges and increased accumulation signal growing confidence in Bitcoin’s long-term value and a shift toward self-custody, potentially boosting its scarcity and price stability. However, challenges in mining and the decline in Bitcoin-based NFT sales reflect ongoing pressures in the ecosystem. At Oxido Solutions, we’re committed to analyzing these trends, adjusting our strategies as needed, and providing our institutional clients with the BTC trading bot software and insights to succeed in the evolving Bitcoin market.
Disclaimer: The opinion expressed in this blog is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any specific exchange, security or investment product. Past performance is no guarantee for future results.
