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Bitcoin Trading Slows as On-Chain Activity Nears Historic Lows
The post Bitcoin Trading Slows as On-Chain Activity Nears Historic Lows appeared on BitcoinEthereumNews.com. Over the last two months, Bitcoin’s on-chain activity has neared historic lows as transaction volumes have reduced noticeably. This cooling off comes after the all-time high of Bitcoin earlier in the year and is a period headline by crowd fear and indecision rather than being a predictor of further price dips. Bitcoin’s On-Chain Activity Declines According to Santiment data, Bitcoin’s on-chain transaction volume has dropped, hitting figures that were last seen years ago (since 2019). This pattern indicates that traders are reluctant to transfer their positions, possibly because of the market’s volatility. The sharp decline in activity followed Bitcoin’s all-time high in March 2024, a milestone that was one year ahead of the expected schedule according to historical halving cycles. Market Reaction and Analysis The sharp decline in the transaction volume has not escaped the attention of market analysts. As reported by Coingape, Bitcoin tested the $60,000 support on May 10 after a very brief trip up to $63,500. In addition, on platforms like X (formerly Twitter), traders suggest that institutional players may be manipulating the market to prevent significant breakouts during weekends when the ETF market is closed. Trader and analyst Rekt Capital highlighted that Bitcoin usually takes a hit weeks after a halving event, an interval he dubs the “danger zone.” ” This phase of price dip, which is coming to an end now, showed a slump in the price of Bitcoin to $56,500. Nevertheless, long-term holders (LTH) are not selling their holdings, which might signify a possible recovery. Price Performance and Economic Influences Bitcoin’s price performance has been volatile, as the cryptocurrency has been unable to sustain its motion above $63,000. Bearish indications from stagflationary US economic data and hawkish remarks by Federal Reserve officials have also weakened the bullish sentiment. Specifically, the University of Michigan Consumer…
The post Bitcoin Trading Slows as On-Chain Activity Nears Historic Lows appeared on BitcoinEthereumNews.com.
Over the last two months, Bitcoin’s on-chain activity has neared historic lows as transaction volumes have reduced noticeably. This cooling off comes after the all-time high of Bitcoin earlier in the year and is a period headline by crowd fear and indecision rather than being a predictor of further price dips. Bitcoin’s On-Chain Activity Declines According to Santiment data, Bitcoin’s on-chain transaction volume has dropped, hitting figures that were last seen years ago (since 2019). This pattern indicates that traders are reluctant to transfer their positions, possibly because of the market’s volatility. The sharp decline in activity followed Bitcoin’s all-time high in March 2024, a milestone that was one year ahead of the expected schedule according to historical halving cycles. Market Reaction and Analysis The sharp decline in the transaction volume has not escaped the attention of market analysts. As reported by Coingape, Bitcoin tested the $60,000 support on May 10 after a very brief trip up to $63,500. In addition, on platforms like X (formerly Twitter), traders suggest that institutional players may be manipulating the market to prevent significant breakouts during weekends when the ETF market is closed. Trader and analyst Rekt Capital highlighted that Bitcoin usually takes a hit weeks after a halving event, an interval he dubs the “danger zone.” ” This phase of price dip, which is coming to an end now, showed a slump in the price of Bitcoin to $56,500. Nevertheless, long-term holders (LTH) are not selling their holdings, which might signify a possible recovery. Price Performance and Economic Influences Bitcoin’s price performance has been volatile, as the cryptocurrency has been unable to sustain its motion above $63,000. Bearish indications from stagflationary US economic data and hawkish remarks by Federal Reserve officials have also weakened the bullish sentiment. Specifically, the University of Michigan Consumer…
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