January 2023 was the most efficient month for bitcoin for the first time since 2021

January 2023 was the most efficient month for bitcoin, according to analytical company Glassnode. According to experts, the flagship cryptocurrency has grown by 38% since the beginning of the year. Previously, the asset was so pleasing to its owners back in October 2021, when the BTC exchange rate gained 41%. Analysts also noted that the panic outflow of cryptocurrencies from centralized crypto exchanges as a result of the FTX coll apse is gradually ceasing.

«#Bitcoin markets have seen the strongest monthly price performance since Oct-2021.

This rally is fueled by both spot demand, and a sequence of short squeezes

We explore these dynamics across derivatives markets, and spot exchanges in our latest piece? t.co/yNWSv2eI2A

— glassnode (@glassnode) January 30, 2023

Glassnode also noted that over the past week, the number of daily bitcoin transactions on the network has exceeded 50,000. «We do not notice a corresponding increase in exchange deposits or withdrawals,» the analysts added. Exchange-related transactions accounted for 35% of the total, a figure that has been steadily declining since May 2021. However, despite the fact that crypto exchanges have managed to stabilize their work, the amount of BTC stored on them is still decreasing.

According to the report, the total balance of the flagship asset stored on trading platforms is about 2.25 million BTC. This is 11.7% of the global bitcoin turnover, and the figure is considered the lowest since February 2018. Glassnode added that the total amount of BTC circulating on crypto exchanges is about $ 625 million per day. It is noted that cryptokits showed the greatest exchange activity in January.

At the time of writing, the main cryptocurrency has dropped by almost 2% and is trading at $ 22.901 with a market capitalization of $ 441.4 billion.

As a reminder, analysts from Blockchain.com have found that BTC has been profitable for 12 years and five months since its inception. As for the time when digital gold was losing money, the researchers counted 564 such days. At the same time, the revival of the cryptocurrency market has provoked the emergence of more than 44,000 new bitcoin millionaires. They have already made a profit as a result of the industry’s gradual revival in early 2023.