There’s a sense of trepidation prevailing in the cryptocurrency markets, as research suggests that the impressive rally in BTC might be in jeopardy. The on-chain transaction data reveals conditions that can best be described as “uncertain”, prompting assertions that the price gains in the first half of the year are unlikely to be replicated in the second quarter.
The study focuses on the sharp fall in the realised capital of the most active part of the BTC supply – that is, coins which were last moved between 24 hours and one month ago. This metric is generally considered a robust indicator of the market’s health, revealing whether bitcoins are being used in transactions or simply held as investments.
Rewind to late 2022, when BTC/USD stumbled to two-year lows, and this metric fell below $20 billion. At the cryptocurrency’s peak in July, it more than doubled to touch $44 billion. The current data shows this figure recovering slightly, yet it is still precariously close to the $20 billion mark, a level largely seen as a floor since last year.
However, the lack of a stronger bounce draws attention to the inconsistency in the recovery, partly impacted by general market sentiment, macroeconomic and geopolitical issues. Consequently, as much as speculators would crave the gains registered in the stellar Q1, the erratic nature of the market dispels any such optimism. When the future looks hazy, the volatility doesn’t bode well for newcomers with aspirations of steady and strong price increases.
Yet, despite the air of uncertainty, growth could be awaiting just around the corner. History has shown that with turbulence often comes opportunities, and the cryptocurrency market is nothing if not unpredictable. But bear this in mind – with every promising beacon of immense potential, illuminating the path to abundance, lies the spectre of risk, looming in the shadows. The sea of crypto is uncharted territory, filled with the unknown. Therefore, those who dare to venture out in search of buried treasures must always be prepared for swells of volatility that could sometimes result in choppy waters.
Source: Cointelegraph
