Happycoin.club - The circulation of the flagship cryptocurrency has slowed down noticeably recently. This was pointed out by the founder and CEO of CryptoQuant, Ki Young Ju. He drew the attention of his subscribers on the social network X, banned in Russia, to the “Velocity” indicator, which tracks the speed at which coins circulate on the market.
According to the chart, Bitcoin's turnover rate increased throughout the 2021 bull market and peaked in the middle of the 2022 bear market. After this, the indicator changed direction and began to decline sharply.
Currently, the consolidated Bitcoin turnover rate is at its lowest level in 13 years since 2011.
The fact that the circulation rate of BTC has dropped sharply, meaning that the coins are not used much for monetary transactions. But Bitcoin was originally conceived as an electronic version of cash.
Despite Satoshi Nakamoto's vision of “P2P electronic cash,” Bitcoin is primarily used as “digital gold,” and institutions hold it without frequent transactions, wrote Ki Young Joo.
