TL;DR Breakdown
- Active Bitcoin addresses drop by 900,000 for the first time in 12 months.
- Massive asset sell-offs are responsible for the drop.
- The uncertainty in the market price of BTC lingers.
In recent times, activities on the Bitcoin network have plunged significantly due to the asset’s price volatility.
On Tuesday, the price of BTC fell below $29K, but it had some recovery on Wednesday as the price leaped above $34K. At the moment, the price of Bitcoin is hovering around the $33K mark.
Bitcoin sell-offs crash number of active addresses
The crypto market has experienced massive sell-offs in recent times due to the volatile price action of Bitcoin and other cryptocurrencies. According to CoinShares, investors liquidated about $89,000,000 worth of BTC investments in the past week.
According to a report from Santiment, active BTC addresses have fallen below 900,000, the lowest since July 2020.
“On a 30-day scale of active address activities, the last time Bitcoin network has such low engagements was 13 July 2020,” Santiment reported.
BTC is back at $33.3K after a rebound at $34.7K on Wednesday. However, an uptick in the number of active addresses is yet to be seen.
Bitcoin Uncertainty, doubts remain high
Despite the recoveries in the price of the world’s largest digital currency and other crypto assets, traders continue to express uncertainty about future price actions. It remains to be seen whether BTC can push above $35K or fall below $30K again.
“At the moment, market prices have taken the opposite turn on crowd expectation,” Santiment said via Twitter.
Currently, Bitcoin’s total market capitalization is hovering around $600 billion, and market dominance has dropped by over 2 percent.
Jim Cramer, an American TV personality and host of Mad Money on CNBC, made his concerns known about the crypto mining meltdown in China and its ripple effect on the sector. Jim went on to mention that he has liquidated almost all of his BTC holdings.
