Santiment: Bitcoin Transaction Volume Reaching Its Peak in 2025 Is an Important Buy/Sell Signal

According to the latest data from the behavior analysis platform Santiment, two spikes in Bitcoin trading volume in 2025 have become an almost perfect signal for traders. The company shared on X that the largest weekly trading volume groups of cryptocurrencies in the past six months have created a market bottom and a new all-time high, indicating that tracking peak trading volume once again is a profitable contrarian strategy. Volume Traded Marked at the Bottom and Top Santiment's chart highlights two important moments. The first is the trading volume surge of $84.08 billion during the tariff-induced downturn in April, marking a "bottom signal"; the second is the spike of $90.90 billion in recent weeks, coinciding with Bitcoin reaching a new all-time high of over $124,000. According to the analysis company, the first signal indicates a strong sell-off that creates a profitable entry opportunity for investors, while the second signal is a leading indicator, synchronized with strong profit-taking activity as BTC reaches a record high. Santiment notes: "The two largest volume spikes from Bitcoin signal an optimal time to buy ( when the price is declining ) and sell ( when the price reaches a new ATH peak )." This assessment was made a few days after Glassnode shared an update indicating that "first-time buyers" added 50,000 BTC to their holdings in five days, while so-called "trust buyers" also accumulated, albeit more cautiously. Meanwhile, "The sellers at a loss" increased by nearly 38%, reflecting the capitulation of weaker sellers, with profit-takers expanding their take-profit levels to the highest this year. Indeed, on August 20, this platform reported that long-term holders had taken profits of $2.8 billion on Bitcoin, Ethereum (ETH), XRP, and Solana (SOL) as the market cooled down. BTC leads the trend, achieving the largest profit-taking event since December 2024, when investors pocketed $1.5 billion on July 18. That wave of selling pushed the OG cryptocurrency below $113,000 earlier this week, dragging other major coins down lower and wiping out over $70 billion in total market value overnight. Adding to the pessimistic sentiment, data from Santiment also shows that crowd sentiment on social media platforms has turned negative, recording the most pessimistic level since June. Price Action Meanwhile, in the market, Bitcoin is trading at $113,705 at the time of writing this article. This price reflects a nearly 7% decrease over the past week, a relatively poor performance compared to the cryptocurrency market as a whole, which has fallen by 3.5% during the same period. Furthermore, the price of this asset has decreased by 3.1% in the past 30 days, although it is still up nearly 91% compared to the same period last year.