The cryptocurrency market is presently experiencing a substantial decline, as both and Ethereum have experienced a substantial decrease in active addresses. This trend, which has persisted throughout 2024, has triggered apprehension regarding the future of these prominent cryptocurrencies. The implications for market dynamics could be profound as investor enthusiasm diminishes.
According to the latest stats from CryptoQuant, Bitcoin’s active addresses have contracted by about 1.17 million to 855,000, whereas has reduced by about 382,000 to 312,000. This equates to a 27% drawdown for Bitcoin and an 18% decline for Ethereum year-to-date.
entering the market appears to be the primary cause of this decline. This is essential for maintaining favorable momentum, as existing participants dominate trading activity in the absence of new capital inflows.
Since early 2024, active Bitcoin and Ethereum addresses have been declining
“For the bulls to dominate the market, the influx of new investors is a crucial condition.
The anticipated excitement surrounding the approval of spot ETFs has not translated into increased activity on the blockchain. Still, the current user base carries a lot of investors who would have expected such developments. The continued quantitative tightening of the Federal Reserve continues to strip liquidity from the market, adding more pressure to the situation.
Market Sentiment And Future Prospects
There are, however indications that a potential rebound is near in the face of these challenges. For example, funding rate on Ethereum has remained positive for the past week, meaning there is growing interest among investors in long positions. This implies that whereas plunges in the price of Ethereum have been ongoing, a good majority of the market remains optimistic regarding its performance going forward.
BTC and ETH addresses decline: BTC drops to 855K, ETH to 312K in 2024
Since the start of 2024, the number of active Bitcoin and Ethereum addresses has continued to drop. Bitcoin addresses fell from 1.17 million to 855,000, while Ethereum addresses declined from 382,000 to…
— CoinNess Global (@CoinnessGL)
It’s quite interesting that large Ethereum holders have been accumulating their assets, rather than selling them off. These large holders reduced their outflows from 311,950 to 139,390, suggesting they have confidence in the long-term prospects of the altcoin. Investors that do this kind of action usually expect the prices to recover soon.
ETHUSD trading at $2,338 on the daily chart:
Furthermore, Bitcoin’s Exchange Flow Multiple has experienced a substantial decline. This metric contrasts with short-term inflows and outflows with those over a lengthier period, indicating that current trading activity is significantly lower than historical averages. A low Exchange Flow Multiple typically suggests that investors are holding their assets in anticipation of future price increases rather than actively trading them.
The broader bitcoin market is negotiating a complicated terrain molded by geopolitics concerns and legislative changes. Recent occurrences have helped investors to be generally more cautious. For instance, despite market volatility causing Ethereum to tumble to about $2,390, Bitcoin has managed to remain constant above $61,100.
Featured image from Vecteezy, chart from TradingView
They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
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Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!
So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
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