Historically, the price of bitcoin is an indicator of the health of the blockchain, and high activities are often associated with strong and positive price behavior. However, the largest cryptocurrency market appears to have witnessed significant changes, and the price responds to changes in the warm chain and less price.
For example, Bitcoin prices continue to hold more than $ 95,000, and despite the continuous dip of the blockchain activity, it is expected to recover $ 100,000. On-chain analytics company said that this is the way and why the flagship cryptocurrency.
The reason why BTC prices have less correlation with warm chain activities
The encryption analysis platform Alphractal is the main reason for Bitcoin prices, despite the low level of transactions and activity addresses. According to the company, the price increase of BTC is not necessarily related to the use of blockchains.
First, Alphractal admitted that the Bitcoin market experienced a dynamic change when the US SPOT exchange transaction fund (ETF) was approved in January 2024. Currently, the value of BTC is led by capital inflow through these financial products rather than blockchain activities.
Source: @Alphractal on XThe whole chain company also mentioned that it played an important role in the historically low volatility of the market. Because the price movement is relatively low, the trader has less incentives to take on new positions, reducing the hotint activity.
Alphractal also mentioned that Bitcoin prices were mainly left by speculative traders through derivatives and other financial instruments. As a result, daily adoption of bitcoin networks has been reduced and real demand is limited.
Alphractal has also implied the macroeconomic uncertainty that blurred the global financial market in recent weeks. According to a whole chain analysis company, this market conditions have been improved, but they are waiting for a clearer optimistic signal before most investors take action.
Finally, Alphractal emphasized the amount of artificial exchange among the main reasons for the rich Bitcoin price. “Some exchanges expand, causing an activity that is misunderstood, and the use of real networks can be humble.”
Bitcoin price at a glance
At the time of this article, the price of BTC is about $ 96,150, reflecting more than 1% in the last 24 hours. According to Coingecko’s data, despite the uneven price behavior this weekend, premiere cryptocurrency is still almost 2% over the weekly period.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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