Bitcoin

Recent data from CryptoQuant suggests that the road to a sustained bull run might be longer than expected. The term “BTC Velocity” has taken centre stage, referring to the pace at which Bitcoin is changing hands in the market, and it’s not painting a rosy picture.The analysis reveals that BTC Velocity has plummeted to its lowest point since August 2020 and is showing no signs of recovery. This decline has sent ripples through the crypto community and raised several key concerns.One of the most concerning aspects is the relentless decrease in Bitcoin Velocity. This metric, which tracks the speed of Bitcoin turnover, has been on a downward trajectory for a considerable period. It’s a clear indicator that the market is experiencing a slowdown in activity.Currently hovering around 23.80, <a href="https://blockchainreporter.net/bitcoin-price/" rel="noopener noreferrer nofollow">Bitcoin’s price</a> has not managed to surpass the previous low point of 19.80. This raises questions about the market’s ability to regain its bullish momentum.<h2 id="header-0">Shifting Macro-Economic Landscape</h2>The analysis also points to a significant shift in the macroeconomic landscape. The transition from the era of low-interest rates in 2020–2022 to the era of high interest rates in 2022–2024 has created an uncertain environment for cryptocurrency investments.Another key factor in this complex equation is the uncertain demand for virtual currencies and the overall mood of the market. It remains unclear whether the demand for cryptocurrencies will increase, and whether market sentiment will improve in the near future.Those who have been patiently holding BTC for a long time are now selling at a profit. Even as Bitcoin Velocity continues its decline during the 2023 rise, the Average Dormancy remains steady. While the current price may be lower than the all-time high reached in 2021, it’s evident that long-time BTC holders are capitalizing on the recent price increase.The market’s psyche has deteriorated, the turnover rate has dwindled, and long-term holders are cashing in. All these factors combine to suggest that a sustained bull market may remain elusive for the foreseeable future. Cryptocurrency enthusiasts and investors will need to keep a watchful eye on these metrics as they navigate the uncertain terrain of the <a href="https://blockchainreporter.net/market/" rel="noopener noreferrer nofollow">crypto market</a>.

Bitcoin Velocity Hits Lowest Point Since 2020, Bull Market Hopes Fade

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Alte articole publicate pe 1 sept. 2023

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