As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous ebbs and flows in the crypto landscape. The recent development of Bitcoin’s active addresses hitting new lows in 2024 is not an unfamiliar sight to me, but it does serve as a stark reminder of the cyclical nature of this dynamic market.
According to a recent assessment by CryptoQuant, the number of actively used Bitcoin addresses has dropped to levels not seen since three years prior, which coincided with Bitcoin’s price being approximately $45,000 in 2024
A lower number of active Bitcoin addresses suggests reduced overall activity across the network, indicating that fewer transactions might be happening. This could be an indication that people aren’t as engaged with the network right now
In the year 2024, the number of active addresses on the Bitcoin network saw record lows, dropping back to levels last seen three years prior when the value of a single Bitcoin was approximately $45,000. – By @gaah_im
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— CryptoQuant.com (@cryptoquant_com) September 4, 2024
A waning enthusiasm towards Bitcoin might affect its value, as indicated by lower trading activity levels
A decrease in network activity tends to cause lower market volatility, which may result in a prolonged phase of price consistency due to range trading or consolidation. Over the past 180 days, Bitcoin’s price has been relatively stable, fluctuating between $49,050 and $73,000
For some investors, a drop in active addresses and price can be interpreted as a buying opportunity, however, this can vary. If the market views the decrease as a sign of weakness or lack of relevance in the current macroeconomic environment, new supports might emerge, thus creating fresh entry points.
Bitcoin price action
Over the past six months, the movement of Bitcoin prices has remained relatively unchanged, while investors have shown a lack of enthusiasm or interest
As reported by Glassnode, there’s been a significant change over the past 3 months, as selling pressure has grown stronger, leading to a major downturn – the largest drop in this market cycle
Regardless, when viewed from a broader standpoint, the current trading value of Bitcoin is approximately 22% lower than its all-time high (ATH) of around $74,000. This suggests that the decline, in comparison to past bull market phases, has been relatively subdued
Despite the fact that most Bitcoin investors have earned profits so far, those who recently purchased (short-term holders) are still losing money on their investments. This puts them in a high-risk category at present
Currently, as I’m typing this, Bitcoin has increased by 1.55% over the past 24 hours, reaching a price of $57,148, based on the information provided by CoinMarketCap
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2024-09-05 18:12