Bitcoin on-chain activity declines, price movement sluggish

Bitcoin Network Activity Decline:

Recent data suggests a significant slowdown in on-chain activity on the Bitcoin network, with transaction volumes, daily active addresses, and whale transactions all decreasing. This decline coincides with the currency’s price hitting an all-time high, leading to concerns about market sentiment and future price movements.

Santiment’s Analysis on Bitcoin Activity:

Santiment’s analysis reveals that Bitcoin’s on-chain transaction volumes are nearing a decade-low, while the number of daily active addresses is at its lowest since early 2019. The decrease in whale transactions, specifically those above $100,000, reflects levels last seen in late 2018. This data highlights a trend towards reduced on-chain activity despite Bitcoin’s price stability.

Interplay of On-Chain Activity and Market Sentiment:

While the decrease in on-chain activity might raise concerns among traders, Santiment analysts suggest that it may not directly correlate with imminent price drops. Instead, they attribute the decline to trader indecision and fear, underscoring the link between on-chain metrics and market sentiment. Despite these challenges, Bitcoin’s price remains steady at around $61,000, indicating resilience amidst market fluctuations.

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