2024

Bitcoin

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Activity on the Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="">BTC</a>) network is approaching historic lows, with traders significantly slowing down transactions in the two months since Bitcoin reached a new all-time high price. 
Insights from data analytics firm Santiment <a href="https://app.santiment.net/charts?settings=%7B%22slug%22%3A%22bitcoin%22%2C%22ticker%22%3A%22BTC%22%2C%22from%22%3A%222023-05-11T07%3A00%3A01.818Z%22%2C%22to%22%3A%222024-05-12T06%3A59%3A59.818Z%22%7D&amp;widgets=%5B%7B%22widget%22%3A%22ChartWidget%22%2C%22wm%22%3A%5B%22price_usd%22%2C%22transaction_volume%22%2C%22daily_active_addresses%22%2C%22whale_transaction_count_100k_usd_to_inf%22%5D%2C%22whm%22%3A%5B%5D%2C%22wax%22%3A%5B0%5D%2C%22wpax%22%3A%5B%5D%2C%22wc%22%3A%5B%22%23868686%22%2C%22%23FF5B5B%22%2C%22%23FFAD4D%22%2C%22%2368DBF4%22%5D%2C%22ws%22%3A%7B%220%22%3A%7B%22interval%22%3A%227d%22%2C%22node%22%3A%22candle%22%7D%2C%221%22%3A%7B%22interval%22%3A%227d%22%2C%22node%22%3A%22area%22%7D%2C%222%22%3A%7B%22node%22%3A%22area%22%2C%22interval%22%3A%227d%22%7D%2C%223%22%3A%7B%22interval%22%3A%227d%22%2C%22node%22%3A%22area%22%7D%7D%7D%5D" target="_blank" rel="">reveal</a> a slowdown in on-chain activity on the Bitcoin network over the past few months, painting a nuanced picture of the cryptocurrency’s current state. 
In a May 11 update on X, Santiment highlighted that on-chain activity on the <a href="https://crypto.news/tag/bitcoin/" target="_blank" rel="">Bitcoin</a> network is the lowest it has been since 2019. This observation stems from a visible downtrend in various metrics, including transaction volume, daily active addresses, and whale transaction count. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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 📉 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#Bitcoin</a>'s <a href="https://twitter.com/hashtag/onchain?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#onchain</a> activity is approaching historic lows as traders have dramatically slowed transactions in the 2 months since its <a href="https://twitter.com/hashtag/alltimehigh?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#alltimehigh</a>. This isn't necessarily a sign of more <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$BTC</a> dips, but rather a signal of crowd fear and indecision. <a href="https://t.co/Tg5TpnVv4D" target="_blank" rel="">https://t.co/Tg5TpnVv4D</a> <a href="https://t.co/ldtv3FPVxA" target="_blank" rel="">pic.twitter.com/ldtv3FPVxA</a>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1789383542021169208?ref_src=twsrc%5Etfw" target="_blank" rel="">May 11, 2024</a>
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According to Santiment, Bitcoin’s on-chain transaction volumes are closing in on their lowest level in 10 years, while the number of daily active addresses is at its lowest since January 2019.&nbsp; 
Additionally, the analytics firm’s data shows that whale transactions, typically those worth more than $100,000, have slowed considerably, mirroring levels last seen in December 2018. 
 You might also like: <a href="https://crypto.news/2-btc-wallets-dormant-11-years-transfer-60m-20-minutes/" rel=""> 11 years dormant, 20 minutes to transfer $60m: Mysterious Bitcoin wallet activation piques curiosity </a> 
While the decline in on-chain activity may seem alarming at first glance, analysts at Santiment have suggested it might not directly correlate with impending BTC price <a href="https://crypto.news/arthur-hayes-foresees-market-bottom-predicts-gradual-uptrend/" data-type="link" data-id="https://crypto.news/arthur-hayes-foresees-market-bottom-predicts-gradual-uptrend/" target="_blank" rel="">drops</a>, as witnessed in recent weeks. 
Instead, they attribute the decline to “crowd fear and indecision” among traders, highlighting the intricate link between on-chain activity and market sentiment. 
Despite these challenges, Bitcoin’s price was relatively steady at the time of writing, hovering just above $61,000, with a slight 0.1% increase in the past day. 
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 Bitcoin 24-hour price chart | Source: CoinGecko
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The coin recorded a 24-hour trading volume of $12.67 billion, which was more than 37% lower than the previous day. 
Over seven days, the price of Bitcoin dropped by 4.6%, meaning that it has underperformed the global crypto market, which is down by 4.2%, per data from CoinGecko. 
As investors navigate through this period of consolidation and subdued on-chain activity, market sentiment and broader economic factors are likely to play a pivotal role in shaping Bitcoin’s trajectory in the coming weeks. 
<h3 class="wp-block-heading" id="bitcoin-runes-protocol">Bitcoin, Runes protocol</h3> 
According to a Dune Analytics dashboard, the Runes protocol on Bitcoin <a href="https://crypto.news/bitcoin-runes-attract-135m-in-fees-post-halving/" data-type="link" data-id="https://crypto.news/bitcoin-runes-attract-135m-in-fees-post-halving/" rel="">raked</a> in $135 million in transaction fees on the cryptocurrency’s largest blockchain.&nbsp; 
On-chain data showed that tokens issued under the standard generated more than 2,100 BTC costs within a week after the halving. &nbsp; 
Since then, activity has slowed. According to a Dune analytics dashboard, <a href="https://www.theblock.co/post/293921/three-weeks-after-its-blockbuster-launch-runes-faces-declining-activity" data-type="link" data-id="https://www.theblock.co/post/293921/three-weeks-after-its-blockbuster-launch-runes-faces-declining-activity" target="_blank" rel="">cited</a> by The Block, Friday, May 10 saw the lowest level of activity on the Runes protocol. 
 Read more: <a href="https://crypto.news/trump-bitcoin-magazine-ceo-day-1-crypto-policy-agenda/" rel=""> Trump taps Bitcoin Magazine CEO to draft ‘day 1’ crypto policy </a>

Bitcoin on-chain activity declines, price movement sluggish

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