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  • Is Bitcoin in danger of not rising in price and being used by fewer people? 😲
Is Bitcoin in danger of not rising in price and being used by fewer people? 😲

Is Bitcoin in danger of not rising in price and being used by fewer people? 😲

A Fresh Look at Bitcoin Trends for 2024

While Bitcoin hit new all-time highs earlier this year, the price has since entered a period of stagnation, leading to decreased transaction activity.

Decrease in Active Addresses and Bitcoin Price

During March, the number of daily active addresses on the Bitcoin network peaked at over one million, consistently staying above 800,000. However, the average dropped to 700,000 in April and saw a significant decline between May and June.

  • The daily minimum in recent months was experienced on the day of the halving, where transaction volume was impacted by anticipation of the event.
  • Excluding this, a second minimum was reached in late May, dropping below 440,000 active addresses.

Understanding the Data Trends

From May to the present, there has been a slight rebound in daily active addresses, reaching close to 600,000. While this indicates a pause in the downward trend, the current levels remain the lowest in four years.

  • In comparison to 2020, this year’s levels are similar post-halving, but lower compared to the peak of the previous market bubble in 2021.
  • Interestingly, during the last bear market in 2022, active addresses never fell below 600,000, demonstrating the resilience of the market.

Transaction Hold and Volume Analysis

Examining daily transaction data on the Bitcoin network, while there have been fewer active addresses, the number of transactions has increased since the beginning of the year, staying at around 600,000 daily transactions.

  • The peak daily transaction volume occurred in April 2024, following the halving, surpassing 900,000 transactions.
  • Overall, this year has seen the highest number of daily transactions on record.

Current Bitcoin (BTC) Price Analysis

Following the price peak in March, Bitcoin entered a period of consolidation, initially ranging between $57,000 and $72,000. Recent fluctuations have narrowed this range to $56,000-$70,000, with potential to drop to $55,000.

  • Concerns about a potential further price decline below $55,000 exist, particularly after a recent crash just below $50,000.
  • Despite short-term uncertainties, historical trends suggest Bitcoin prices tend to rise significantly in the medium to long term post-American elections.

Hot Take: Bitcoin Insights for the Future

After reaching new highs earlier this year, Bitcoin has experienced a period of consolidation and decreased transaction activity, leading to lower active addresses on the network. While short-term price uncertainties persist, historical trends indicate potential for future price appreciation in the medium to long term.

Read Disclaimer
This content is aimed at sharing knowledge, it's not a direct proposal to transact, nor a prompt to engage in offers. Lolacoin.org doesn't provide expert advice regarding finance, tax, or legal matters. Caveat emptor applies when you utilize any products, services, or materials described in this post. In every interpretation of the law, either directly or by virtue of any negligence, neither our team nor the poster bears responsibility for any detriment or loss resulting. Dive into the details on Critical Disclaimers and Risk Disclosures.

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Is Bitcoin in danger of not rising in price and being used by fewer people? 😲