Bitcoin Investors appear to be taking a cautious approach, as evidenced by the recent notable drop in the number of active BTC addresses. This points to a decline in on-chain activity as the market remains volatile.
Bitcoin Sees Decline in Active Addresses
Kyle Doops, a market expert and host of the Crypto Banter show, shared the development in a recent post on the X (formerly Twitter) platform. The drop in active addresses implies a drop in transaction volume, which could mean that investors are choosing to wait and see how Bitcoin will respond, given the state of the market.
According to the market expert, the substantial decline in the number of active Bitcoin addresses in 2024, in contrast to previous bear markets, points to a halt in market activity. This pattern is indicative of a broader reluctance in the cryptocurrency space, where declines in trading activity are a result of volatility and uncertainty.
Despite the stagnation in prices, Kyle Doops noted that investors are cautious, influenced by external forces such as the Bitcoin Spot Exchange-Traded Funds (ETFs) and the upcoming US elections. He further emphasized that if the number of active BTC addresses were to increase, it could be a sign of impending price increases in the short term.
The message read:
The sharp decline in active Bitcoin addresses in 2024 signals a lull in market activity, unlike previous bear markets. Despite price stagnation, investors are cautiously observing, influenced by external factors such as ETFs and the US elections. A rebound in active addresses could signal a future price increase.
The sharp drop comes amid mounting speculation about BTC reaching a new high. highest point ever in the near future, which shows the shared confidence in the community about the potential of the crypto asset. One of the crypto analysts who has predicted BTC’s path to a new all-time high is Michael Van De Poppe, the Chief Information Officer (CIO) of MN Consultancy.
Considering Bitcoin’s recent price movement, Van De Poppe underlined that while the digital asset has had a good start to the week, it has been trapped in a very tight range between $60,748 and $56,022 for over a month.
Moreover, the expert claims that once BTC manages to break out above the $61,000 threshold, it will cause a significant price increase towards a new all-time high. Van De Poppe’s analysis reflects the resilience of BTCwhich offers new hope to investors and traders.
BTC witnesses an obstacle
Bitcoin, the largest cryptocurrency asset, is trading on a downtrend as the coin has seen a hurdle at the $60,000 price level, causing a drop below the $57,500 mark. This sudden drop is due to a broader market downturn.
Currently, Bitcoin is trading at $56,666 level, indicating a decline of more than 4% over the past day, according to CoinMarketCap. Despite the price drop, trading volume has increased by around 28% over the past day, suggesting that investors may be confident that a recovery could happen soon.
Main image from Unsplash, chart from Tradingview.com