Bitcoin's current trading volume is less than one-fifth of the peak volume during the 2021 bull market, which may suggest that no one wants to sell.

Although Bitcoin's price rose above $70,000 on Monday, actual transaction activity on the Bitcoin blockchain is still "stumbling" rather than moving at full speed.

A research firm said that this discrepancy partly reflects the strong holding sentiment in the market.

Analysts at Blockware Solutions said, "The average on-chain transaction volume (in U.S. dollars) is far below the peak of the 2021 bull market, which may suggest that no one wants to sell."

Data tracking company Glassnode defines transaction volume as the dollar value of the total amount of Bitcoin transferred on the chain, a metric that only considers successful transfers.

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Data tracked by Glassnode shows that as of Monday, Bitcoin's 7-day and 14-day average transaction volumes are below $200,000, far from the $1 million and above during the 2021 bull market.

Wall Street's pursuit of a spot Bitcoin ETF listed on Nasdaq is the main reason for Bitcoin's recent round of increases. In other words, spot trading volume is likely concentrated in ETFs, which also explains the low on-chain transaction volume.

Nevertheless, other indicators also suggest that investors who survived the 2022 bear market are continuing to hold their tokens and expect prices to continue to rise.

Several analysts predict that Bitcoin's price will rise to six figures in the coming months, eventually reaching a peak far above $150,000.

Blockware analysts said, "Once we see the price really start to fluctuate, that's when on-chain transaction volume will surge, old Bitcoins will be transferred to exchanges for sale, and before that, lower on-chain transaction volume is a sign of insufficient supply-side liquidity."Last Wednesday, the price of Bitcoin once fell to a low of around $60,800. Alex Thorn, the head of research at Galaxy Digital, said that such a decline is "fully in line with the norm for short-term adjustments in historical bull markets."

The reason for the sharp rise on Monday is still unclear, but the price trend of cryptocurrencies in March is characterized by record highs, followed by healthy pullbacks. Thorn suggested that investors are pausing the sale of spot Bitcoin ETFs. He said, "The record outflows of GBTC funds in the past two weeks may have been caused by the bankruptcy liquidation of Genesis and Gemini, leading to a softening of spot ETFs, but some technical indicators show that sellers are exhausted."

Sam Callahan, chief analyst at Bitcoin service company Swan Bitcoin, believes that yesterday's surge in Bitcoin may be related to the message sent by the Federal Reserve last week. He said:

"Federal Reserve officials clearly indicated last week that they are considering lowering interest rates this year and slowing the pace of the quantitative tightening plan. These measures will improve liquidity conditions and act as a positive catalyst for asset prices. As a barometer of liquidity conditions, Bitcoin has responded positively to the information that the Federal Reserve's monetary policy may ease in the near future."