Bitcoin (BTC) network activity has fallen to an all-time low, signaling a decline in interest in the crypto market. Data from CryptoQuant shows that the number of transactions has significantly reduced.
Currently, there are less than 800,000 active addresses per day, down from almost 1.2 million in March of this year. This drop in activity is seen as a symptom of the stagnant Bitcoin price.
Lowest activity in three years
According to a recent blog post by CryptoQuant, the current number of active Bitcoin addresses is the lowest since 2021, when the Bitcoin price was hovering around $45,000. This low activity suggests that fewer transactions are taking place, which points to a reduced interest in using the Bitcoin network.
“A decrease in active addresses indicates less network activity, which could indicate declining interest in Bitcoin,” says an analyst at CryptoQuant.
This drop in network activity coincides with a broader trend of investor disappointment. The Bitcoin market is showing no clear direction, creating uncertainty among investors. However, some market participants are viewing this situation as a buying opportunity.
CryptoQuant suggests that the current conditions could be favorable for long-term investors. The slowing activity and stable prices could be an incentive for some to get in now, in anticipation of a future recovery.
Additionally, the Puell Multiple, a key indicator of the value of daily mined Bitcoin relative to the 365-day moving average, is also at a low level. This could indicate that the market is in a transition phase towards a period of potential price increases.
Uncertainty and Instability: Bitcoin Awaits Next Big Move
The current situation is quite unclear. According to Checkmate, the founder of Checkonchain, the Bitcoin price is moving in a narrow range with no clear breakthrough. He describes this situation as “chopsolidation,” which indicates that the price is in an unstable phase.
“The price swings are becoming larger and longer lasting,” Checkmate said. “This suggests that the market is preparing to move in a new direction.”
Although the market has not yet undergone major corrections as in previous bull markets, analysts believe that the current instability could result in a significant price movement. Only time will tell which direction this movement will take.
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Source: https://newsbit.nl/daling-in-bitcoin-activiteit-wijst-op-verminderde-interesse-in-cryptomarkt/
