Bitcoin (BTC) is moving in an uncertain market since the beginning of this month. The course seems to falter and is waiting for a clear boost. If this impulse remains, the risk of a further price fall grows.
According to analysts from cryptoquant, the Bitcoin course could even fall back to a price of $ 86,000. This possible decrease is mainly attributed to three fundamental factors: a decreasing demand, a declining network activity and a drying liquidity on the market.
Decreasing demand for Bitcoin presses the course
One of the most disturbing signals for the Bitcoin market is the greatly decreasing demand for Bitcoin ETFs. Whereas at the end of 2024 there was still a substantial intake of capital, especially driven by optimism around American policy under President Donald Trump, this positive trend has now completely changed. The demand for Bitcoin dropped from a peak of 279,000 BTC on December 4 to only 70,000 BTC recently.
While purchases of around 18,000 BTC took place in November and December, we see more and more net outflows in recent weeks. This indicates that institutional investors are losing their interest, which has a negative effect on price development.
Weak network activity and stagnating stablecoin growth
Not only does the demand for Bitcoin decrease, but also the activity on the blockchain shows a clear downward trend. The Bitcoin Network Activity Index, an important indicator of overall network activity, has fallen by no less than 17% since the peak in November 2024. The current activity level is even below the 365-day advancing average, a situation that was last observed during the Chinese Mining-Ban in July 2021.
The growth of Stablecoins such as USDT has also almost completely stopped. Stablecoins play an essential role as a source of liquidity within the cryptomarket, so that stagnation can negatively influence trade.
Although the total market capitalization of Stablecoins recently reached a record high of $ 200 billion, the growth rate has fallen drastically. The 60-day average of USDT’s market capitalization has fallen by more than 90% since mid-December. This sharp decrease can partly be attributed to the increasing legislative pressure that USDT is currently dealing with.
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Source: https://newsbit.nl/bitcoin-koers-onder-druk-dreigt-een-gigantische-crash-naar-86-000/
