Over the last two months, Bitcoin’s on-chain activity has neared historic lows as transaction volumes have reduced noticeably.
This cooling off comes after the all-time high of Bitcoin earlier in the year and is a period headline by crowd fear and indecision rather than being a predictor of further price dips.
Bitcoin’s On-Chain Activity Declines
According to Santiment data, Bitcoin’s on-chain transaction volume has dropped, hitting figures that were last seen years ago (since 2019). This pattern indicates that traders are reluctant to transfer their positions, possibly because of the market’s volatility.
The sharp decline in activity followed Bitcoin’s all-time high in March 2024, a milestone that was one year ahead of the expected schedule according to historical halving cycles.
Market Reaction and Analysis
The sharp decline in the transaction volume has not escaped the attention of market analysts. As reported by Coingape, Bitcoin tested the $60,000 support on May 10 af
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