Bitcoin nears record high amid a mix of increasing optimism and fear, uncertainty, and doubt (FUD) surrounding the cryptocurrency. Despite the heightened interest, Bitcoin’s trading volume has notably decreased.
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Bitcoin nears Record High
Recent data shows that the seven-day trading volume has dipped below $14 billion, a level last seen in 2023 when Bitcoin was trading below $30,000. This drop in trading volume might have a silver lining, as it suggests a growing number of addresses are choosing to hold onto their BTC.
Currently, Bitcoin is trading at $68,899.70, marking a 2.14% increase in the past 24 hours. Additionally, Bitcoin’s MVRV ratio has climbed, indicating that a significant number of Bitcoin holders have recently become profitable.
https://coinmarketcap.com/currencies/bitcoin
While the rise in profitability might tempt some investors to sell their BTC, potentially driving the price down, there is also an increase in the Long/Short ratio for BTC. This suggests a growing number of long-term BTC holders, who are generally less inclined to sell during periods of price volatility and are more likely to hold onto their tokens.
Network Activity and NFTs
Another measure of interest in Bitcoin is the number of active addresses on the network. Data from cryptocurrency analytics firm Santiment reveals that the number of daily active addresses has dropped significantly in recent weeks.
This decline might be partly attributed to the current state of the NFT sector. Recent weeks have seen a sharp drop in NFT sales, buyers, and sellers. According to Crypto Slam, sales volume has plummeted by 75.36%, and the total number of NFT transactions has decreased by 60%.
Miner Revenue
This decline in network activity could have implications for miner revenue. Recently, Bitcoin miners have seen their daily revenue drop significantly. If this trend continues, miners might be compelled to sell their tokens to maintain profitability, which could put additional downward pressure on BTC prices.
Conclusion
To conclude, Bitcoin nears record high while the crypto space is marked by mixed signals. Decreasing trading volumes and active addresses suggest cautious optimism among long-term holders, but declining network activity and miner revenues pose potential challenges. As the market navigates these dynamics, the interplay between investor behavior and network fundamentals will be crucial in determining Bitcoin’s trajectory.
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