Bitcoin (BTC), the leading cryptocurrency globally, has not registered notable figures in its on-chain metric. This has sparked concern among some market participants who have noted that Bitcoin’s current transaction volume does not reflect heightened investor interest. CZ’s Perspective: Bitcoin Is Evolving However, Changpeng “CZ” Zhao, the former CEO of Binance, has weighed in on the concerns in the broader crypto community. CZ suggests that the decline in practical everyday transactions was a result of a significant shift in Bitcoin’s utility. Zhao noted that Bitcoin is increasingly becoming a store of value rather than a medium of exchange, just like gold. Notably, the surge in Bitcoin exchange-traded funds (ETFs) has contributed significantly to this trend. According to him, more institutional investors are gaining exposure to BTC without necessarily holding or moving the asset on-chain. That is, instead of buying and selling Bitcoin directly, they trade ETF shares which do not generate blockchain transactions. Zhao however made it clear it was his opinion of the current trend. Thus, he is leaving the discourse open for others to share their opinions to explain the current trend. Bitcoin’s Transaction Volume Raises Questions Interestingly, Zhao’s explanation was in reaction to a post by a user with the name Immortal on X. Immortal had expressed doubt about an anticipated Bitcoin bull run based on the current volume of transactions on the blockchain. The crypto analyst noted that in 2021, BTC witnessed a historic bull run that drove the price to an all-time high of approximately $69,000. He maintained that transaction volumes four years ago were way higher. In essence, Immortal is questioning whether Bitcoin has the capacity to enter into a bull run. Particularly, without a corresponding on-chain activity as seen in past market rallies. This adds to the debate on Bitcoin’s price movement and whether the market fundamentals support an upward trajectory. Bitcoin ETFs is a New Market Reality Other experts, such as Chris Kuiper, Director of Research, and the Fidelity crypto unit, agree with Zhao. Kuiper noted Bitcoin ETF dominance has contributed to the empty state of the memory pool. He insists that poor on-chain performance does not suggest that another bull run is impossible. As of this writing, BTC is changing hands at $97,113.70, representing a 0.44% decline in the last 24 hours. The trading volume has dipped significantly by 42.30% to $15.3 billion. The post Binance Founder CZ Weighs in on Alarming Bitcoin Data appeared first on TheCoinrise.com .
