2024

Bitcoin

<h2 class="wp-block-heading" id="overview-of-current-on-chain-activity">Overview of Current On-Chain Activity</h2>
<p>Bitcoin (BTC) network activity is dwindling to near-historic lows, marking a significant slowdown in transactions just months after reaching record high prices. According to insights from data analytics firm Santiment, a detailed examination of the network’s current condition indicates a considerable drop in several key metrics.</p>
<h2 class="wp-block-heading" id="bitcoin-data-insights-from-santiment">Bitcoin Data Insights from Santiment</h2>
<p>Santiment’s May 11 update on <a href="https://twitter.com/santimentfeed/status/1789383542021169208" data-type="link" data-id="https://twitter.com/santimentfeed/status/1789383542021169208" target="_blank" rel="noopener noreferrer nofollow">X </a>platform highlighted an alarming downturn in on-chain activity, noting the lowest levels of transaction volume, daily active addresses, and significant transactions (whale transactions) since 2019. Specifically, transaction volumes are nearing their lowest in a decade, and the number of daily active addresses has not been this low since January 2019. Meanwhile, whale transactions have diminished, mirroring figures last observed in December 2018.</p>
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a>'s <a href="https://twitter.com/hashtag/onchain?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#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="noopener noreferrer nofollow">#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="noopener noreferrer nofollow">$BTC</a> dips, but rather a signal of crowd fear and indecision. <a href="https://t.co/Tg5TpnVv4D" target="_blank" rel="noopener noreferrer nofollow">https://t.co/Tg5TpnVv4D</a> <a href="https://t.co/ldtv3FPVxA" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/ldtv3FPVxA</a></p>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1789383542021169208?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 11, 2024</a>
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<h2 class="wp-block-heading" id="market-reaction-and-sentiment">Market Reaction and Sentiment</h2>
<p>Despite what might seem like worrisome indicators, the decline in on-chain activity does not necessarily predict a drop in BTC prices, which have remained relatively stable. Santiment suggests that the slowdown could be attributed to “crowd fear and indecision,” underlining the complex relationship between on-chain metrics and market sentiment. Currently, Bitcoin’s price is just above $61,000, showing a <a href="https://btc-pulse.com/hong-kongs-spot-etfs-help-mitigate-outflows-from-u-s/" data-type="link" data-id="https://btc-pulse.com/hong-kongs-spot-etfs-help-mitigate-outflows-from-u-s/" rel="noopener noreferrer nofollow">modest </a>increase of 0.1% over the past day.</p>
<h2 class="wp-block-heading" id="trading-volume-and-price-trends">Trading Volume and Price Trends</h2>
<p>The trading volume for Bitcoin over the last 24 hours was significantly lower, dropping more than 37% compared to the previous day. Over the past week, Bitcoin’s price has fallen by 4.6%, underperforming against the general crypto market, which saw a 4.2% decline.</p>
<h2 class="wp-block-heading" id="broader-implications">Broader Implications</h2>
<p>As traders and investors face this period of consolidation and <a href="https://btc-pulse.com/canaan-unveils-new-energy-efficient-bitcoin-miner/" data-type="link" data-id="https://btc-pulse.com/canaan-unveils-new-energy-efficient-bitcoin-miner/" rel="noopener noreferrer nofollow">reduced </a>on-chain activity, broader market sentiments and economic factors are expected to significantly influence Bitcoin’s price direction in the upcoming weeks.</p>
<h2 class="wp-block-heading" id="spotlight-on-runes-protocol">Spotlight on Runes Protocol</h2>
<p>In a related note, the Runes protocol on Bitcoin has seen a spike in transaction fees, accumulating $135 million on the cryptocurrency’s largest blockchain. On-chain data after the halving indicated a surge in token issuance costs, with more than 2,100 BTC in fees generated within a week. However, activity has since decreased, with the lowest levels of engagement observed on Friday, May 10, according to Dune Analytics.</p>
<p>The current state of Bitcoin offers a nuanced picture: while on-chain activity is on a decline, the price resilience suggests that investors might still be cautiously optimistic about the cryptocurrency’s future trajectory.</p>

Bitcoin On-Chain Activity Hits Historic Low, Price Remains Steady

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BTC-Pulse

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