- The on-chain transaction volume of Bitcoin has fallen to levels not seen since 2019.
- The precipitous drop in activity followed Bitcoin’s record high in March 2024, ahead of halving.
Due to a precipitous drop in transaction volumes, Bitcoin’s on-chain activity has been approaching record lows throughout the last two months. This slump follows Bitcoin’s all-time high earlier this year and is more a result of market uncertainty and apprehension than a foreshadowing of future price declines.
The on-chain transaction volume of Bitcoin has fallen to levels not seen since 2019, according to statistics from Santiment. Because of the unpredictable nature of the market, traders are hesitant to move their holdings, as seen by this pattern.
Dull Momentum
The precipitous drop in activity followed Bitcoin’s record high in March 2024, which occurred a full year earlier than predicted based on past halving cycles. Nobody in the market has been oblivious to the precipitous drop in transaction volume. Following a short surge to $63,500, Bitcoin challenged the $60,000 support level on May 10.
Furthermore, traders and investors speculate that institutional players are trying to thwart big breakouts on weekends, when the ETF market is closed, by influencing the market.
Rekt Capital, a trader and analyst, pointed out that Bitcoin’s value often drops in the weeks after a halving event, a period he calls the “danger zone.” The price of Bitcoin fell to $56,500 during this period of decline, which is currently ending. Still, LTHs aren’t cashing out, which would indicate a turnaround in fortunes.
Since the cryptocurrency has failed to maintain its upward momentum over $63,000, Bitcoin’s price performance has been very unpredictable. Federal Reserve’s hawkish comments and stagflationary US economic indicators have further dampened optimism.
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