Bitcoin
Bitcoin On-Chain Activity Approaching All-Time Lows – What This Means for BTC Price – TradingView News
Bitcoin price has continued to move within a consolidation range since reaching a new all-time high in mid-March. This slow price action has been a source of concern for most investors, especially as the leading cryptocurrency recently lost its support at the $60,000 level.
Interestingly, price is not the only Bitcoin metric that has cooled off since the first quarter of the year. Data analytics firm Santiment revealed that on-chain activity on the Bitcoin network has also slowed down in recent months.
How historically low activity on the network affects the price of BTC
In a new post on Platform X, Santiment revealed that on-chain activity on the Bitcoin network is approaching all-time lows. This revelation is based on the notable downward trend in several metrics, mainly transaction volume, daily active addresses, and whale transaction count.
According to the blockchain intelligence platform, investors have been trading less in BTC since the leading cryptocurrency reached a new all-time high price. As a result, activity on the Bitcoin network fell to the lowest level since 2019.
Analyzing the metrics, Santiment discovered that transaction volume on the pioneering blockchain is falling to the lowest level in the last decade. The data analytics company defines transaction volume as a metric that tracks the total amount of coins transacted for a given asset within a period of time.
Furthermore, Santiment mentioned in its report that the number of daily active addresses, which measures the number of distinct addresses that participated in a BTC transaction on a given day, reached its lowest point since January 2019.
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The blockchain intelligence platform also revealed that whale activity has slowed down on the Bitcoin network. The number of whale transactions (greater than US$100,000) fell to the lowest point since the end of 2018, according to data from Santiment.
On the surface, the decline in on-chain activity seems like a worrying trend and a symptom of shaky market health. Santiment, however, noted that this drop may not necessarily be associated with imminent drops in BTC prices – as seen in recent weeks.
The analytics firm said the decline in activity on the network is more indicative of “crowd fear and indecision” among traders. Ultimately, this highlights the connection between on-chain activity and sentiment in the Bitcoin market.
Bitcoin Price Overview
According to data from CoinGecko, the price of Bitcoin is just above $60,770, with a price drop of just 0.2% in the last day.