Bitcoin On-Chain Activity Nearing Historic Lows – What This Means For BTC Price
12 Mayo 2024 - 5:00AM
NEWSBTC
The price of Bitcoin has continued to move within a consolidation
range since hitting a new all-time high in mid-March. This sluggish
price action has been a source of worry to most investors,
especially when the premier cryptocurrency recently lost its
support at the $60,000 level. Interestingly, price is not the only
Bitcoin metric that has cooled off since the first quarter of the
year. Data analytics firm Santiment has revealed that on-chain
activity on the Bitcoin network has also slowed down over the past
few months. How Historically Low On-Chain Activity Affects BTC
Price In a new post on the X platform, Santiment revealed that
on-chain activity on the Bitcoin network is approaching historic
lows. This revelation is based on the noticeable downtrend in
various metrics, notably transaction volume, daily active
addresses, and whale transaction count. Related Reading: US Mega
Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC
Drops To $60,000 According to the blockchain intelligence platform,
investors have been transacting less with BTC since the premier
cryptocurrency hit a new all-time high price. As a result,
Bitcoin’s on-chain activity has dropped to its lowest level since
2019. Breaking down the metrics, Santiment found that transaction
volume on the pioneer blockchain is falling to its lowest in the
past decade. The data analytics firm defines transaction volume as
a metric that tracks the total amount of coins transacted for a
given asset within a timeframe. What’s more, Santiment mentioned in
its report that the number of daily active addresses, which
measures the number of distinct addresses that participated in a
BTC transaction on any given day, has reached its lowest point
since January 2019. Source: Santiment/X The blockchain intelligence
platform also revealed that whale activity has slowed down on the
Bitcoin network. The number of whale transactions (greater than
$100,000) has fallen to the lowest point since the end of 2018,
according to Santiment’s data. On the surface, the decline in
on-chain activity seems like a worrying trend and a symptom of
an unstable market health. Santiment, however, noted that this dip
might not necessarily be associated with imminent BTC price dips –
as seen in the past weeks. The analytics company said that the
decline in on-chain activity is more indicative of “crowd fear and
indecision” amongst traders. Ultimately, this underscores the
connection between the on-chain activity and sentiment in the
Bitcoin market. Bitcoin Price At A Glance According to data from
CoinGecko, the price of Bitcoin sits just above $60,770, with a
mere 0.2% price dip in the past day. Related Reading: Ex-Twitter
CEO Jack Dorsey Says Bitcoin Will Reach $1 Million, Here’s When
Bitcoin price continues to move within a range | Source: BTCUSDT
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