The two largest crypto assets, Bitcoin Both Ethereum and Ethereum are witnessing a noticeable shift in investor behavior and confidence as evidenced by the negative trend in their network activity, which has led to a slowdown in performance in the past months.
Active addresses in Bitcoin and Ethereum in 2024
Recently, Bitcoin and Ethereum activity has decreased significantly due to the continuous decrease in the number of active addresses on both networks. Kyle Dobbs, Crypto Banter host and market expert, subscriber The worrying development on the X platform (formerly Twitter), sparking speculation about its impact on two leading digital assets.
This pessimistic turn of events indicates a potential slowdown in user adoption and a broader decline in transaction volume, reflecting the market momentum of Bitcoin and… Ethereum It may be decreasing. Several factors, such as market uncertainty and profit-taking due to current price fluctuations, are considered to have led to this decline, which may cause users to momentarily leave the network.
The market expert confirmed that the number of active addresses has been constantly decreasing since the beginning of this year, despite general expectations of a bull market. Specifically, this means that fewer wallets interface with these two blockchains.
Kyle Dobbs stressed the need for patience towards the shift to quantitative easing in order to revive market excitement as the sector awaits new investors as liquidity is being drained by Fed tightening.
Leading on-chain data and analytics company CryptoQuant has also done so Highlight About the development, noting that new investors are not entering the cryptocurrency scene as investors and liquidity have already entered the market in anticipation of Exchange Traded Funds (ETFs) for Bitcoin and Ethereum.
However, CryptoQuant noted that the decline in active addresses means the hype has yet to materialize and there has been no upside yet. First interest rate cut by the Federal Reserveas was expected. This is due to the fact that the Fed continues quantitative tightening (QT), which is the process of withdrawing liquidity from the market.
Furthermore, CryptoQuant claims that during the same period, there were also notable increases in the M2 money supply. Ultimately, the platform expects a rise in active headlines and a return of market noise once the Fed resumes quantitative easing again, a way to add liquidity to the market.
Increasing negative price sentiment
Bitcoin and Ethereum continue to struggle to start rising as a result of Public market Disruption, raising concerns about the path of the leading digital asset.
At present, the price Bitcoin It fell nearly 2% in the past day, trading at $60,945, while Ethereum It sees a further price decline of approximately 5% in the same time frame, and is trading at $2,360. Both assets are currently witnessing a decline in investor sentiment with their trading volume showing a similar decline of over 19%.
Featured image from Unsplash, chart from Tradingview.com
Comments are closed, but trackbacks and pingbacks are open.