Bitcoin velocity hits historically low level as Standard Chartered renews laser-eyed forecast

Bitcoin velocity, a measure of how frequently the digital asset is traded or used for transactions, stands at a historically low level, according to analysts.

Bitfinex analysts observed a contrast between the current bitcoin velocity and the average recorded in the last cryptocurrency bear market in 2018-2019.

"Historically low bitcoin velocity indicates a significant change in sentiment compared to the last bear market cycle," the analysts said in a note.

According to Bitfinex, the low-velocity level suggests holders of the digital asset have become reluctant to sell and that buyers are seeking out new supply.

"It is not surprising therefore that bitcoin reached a new year-to-date high of $38,410 on November 24, as holders become reluctant to sell and buyers seek out supply," the analysts added.

Bitcoin on track for $100,000, according to StanChart

On Tuesday, Standard Chartered Bank said its April forecast that bitcoin would reach $100,000 by the end of 2024 still stands.

According to Standard Chartered Bank Head of FX Research Geoff Kendrick, the main catalyst for upward price trajectory will be the approvals of several U.S.-based spot bitcoin ETFs.

Kendrick and his team expect these approvals "are likely to come sooner than expected."

"We think a number of spot ETFs will now be approved in Q1-2024 for both BTC and ETH, paving the way for institutional investment," they said.

"Put simply, everything is working as expected," they continued. "BTC's dominance remains intact, its share of overall digital assets market cap has increased to 50% from 45% in April."

The world's largest cryptocurrency by market capitalization increased 3.2% over the past 24 hours to $38,141 at 2:40 p.m. ET, according to CoinGecko.