Big slowdown in Bitcoin on-chain activity: how is that tied to the ETFs?

Bitcoin on-chain accumulation report, May 2024

Can Bitcoin grow without the ETFs? 

I’ve been asked this question a lot since the inflows dried off right after BTC made a new all-time high earlier this year. The answer is yes. But that would be like playing on hard mode.

Lets discuss that and how it is tied to the on-chain activity.

---

The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions. 

We spend hours every day gathering data, creating metrics and bringing them to life with data visualizations that allow you to quickly get to the heart of things.

We then distill all that knowledge in each issue of the newsletter with less words and more charts so that you get insights, direct to the point, in five minutes or less.

Join more than 22,000 investors here:

Done? Thanks! That’s great! Now let’s dive in.

P.S. we have just released a new dashboard on the Bitcoin miners. The purpose of this dashboard is to track if the Bitcoin miners stocks are over priced or under priced relative to Bitcoin. Paid subscribers can check it out here.

---

Big slowdown in Bitcoin on-chain activity: how is that tied to the ETFs?

The takeaway

The on-chain activity for Bitcoin is slowing down. Over the shorter time frames it is already back to the base level. Over the longer time frames it has started to decline too. 

The Bitcoin ETFs have stopped growing and there is nothing else filling the gap in demand.

Historically bull markets come with a rise in the on-chain activity. So the decline we are seeing now is bad news.

It seems that outside of the ETFs the demand for Bitcoin isn’t very strong. That doesn’t mean Bitcoin cannot grow without the ETFs. But it is hard to find anything else that’s matching the level of demand coming from those funds.

On-chain activity is going back to base level