From Investing.com: 2024-06-22 09:30:25

Bitcoin, the leading cryptocurrency, has surged to $73,798 in March, quadrupling since the start of 2023 due to ETF demand. However, analyst Ali notes a worrying trend: a significant decrease in on-chain activity, potentially signaling reduced investor interest and network usage. This decline in activity may indicate a period of consolidation or decreased engagement with Bitcoin.

The decrease in on-chain activity does not necessarily spell doom for Bitcoin. It could be a reflection of investors waiting on the sidelines amidst lackluster market activity, anticipating a major move. Nonetheless, Bitcoin saw a 14% drop from its March peak of nearly $74,000, influenced by uncertainties over U.S. interest rate changes and market drivers.

Bitcoin hit a more than one-month low at $63,300, rebounding slightly to $64,232. The drop to the lowest level since May 15 is part of the cryptocurrency’s recent volatility amid changing market dynamics and fluctuations in investor sentiment. This market behavior indicates a period of uncertainty and potential reevaluation of investment strategies.

Read more at Investing.com: Key Indicator Predicts BTC Downturn By U.Today