bitcoin price has continued to move within a consolidation range since reaching a new all-time high in mid-March. This slow price action has been a source of concern for most investors, especially when the leading cryptocurrency recently lost its support at the $60,000 level.
Interestingly, the price is not the only bitcoin metric that has cooled since the first quarter of the year. Data analytics company Santiment has revealed that on-chain activity on the bitcoin network has also slowed down in recent months.
How Historically Low On-Chain Activity Affects btc Price
in a x.com/santimentfeed/status/1789383542021169208″ target=”_blank” rel=”nofollow”>new post On the x platform, Santiment revealed that the bitcoin network's on-chain activity is approaching all-time lows. This revelation is based on the notable downward trend in several metrics, particularly transaction volume, daily active addresses, and whale transaction count.
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According to the blockchain intelligence platform, investors have been transacting fewer btc since the leading cryptocurrency hit a new all-time high price. As a result, bitcoin on-chain activity has fallen to its lowest level since 2019.
Analyzing the metrics, Santiment found that transaction volume on the pioneering blockchain is falling to its lowest level in the last decade. The data analytics firm defines trading volume as a metric that tracks the total number of coins traded for a given asset within a time period.
Furthermore, Santiment mentioned in its report that the number of daily active addresses, which measures the number of distinct addresses that participated in a btc transaction on a given day, has reached its lowest point since January 2019.
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Source:x.com/santimentfeed/status/1789383542021169208" target="_blank" rel="nofollow"> Santiment/x
The blockchain intelligence platform also revealed that whale activity has slowed down on the bitcoin network. The number of whale transactions (over $100,000) has fallen to the lowest point since late 2018, according to data from Santiment.
At first glance, the decline in on-chain activity appears to be a worrying trend and a symptom of unstable market health. Santiment, however, noted that this drop might not necessarily be associated with imminent btc price drops, as has been seen in recent weeks.
The analytics firm said the decline in on-chain activity is more indicative of “crowd fear and indecision” among merchants. Ultimately, this underlines the connection between on-chain activity and sentiment in the bitcoin market.
bitcoin price at a glance
According bitcoin” target=”_blank” rel=”nofollow”>CoinGecko dataThe price of bitcoin sits just above $60,770, with a price drop of just 0.2% in the last day.
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bitcoin price continues to move within a range | Source: BTCUSDT chart on x/fskzsPnO/" target="_blank">TradingView
Featured image from iStock, chart from TradingView
