The continued volatility of the cryptocurrency market has compelled investors to develop several strategies for navigating the gloomy environment. By choosing to hold Bitcoin, investors seem to be anticipating a probable market rise in the future.
According to statistics from the crypto analytics website Glassnode, Bitcoin exchange deposits beneath the seven-day moving average fell to a two-year low of 1,921 BTC on August 25.
The most recent decline in exchange deposits occurs as Bitcoin confronts the possibility of falling below $20,000 in value. At the time of publication, the asset was trading at $21,600, with less than 1% growth over the previous twenty-four hours.
Addresses in loss reached a monthly peak
Consequently, investors’ trust in the market seems to have diminished at a time when the majority of addresses are experiencing declines.
Notably, Bitcoin’s price decline follows the prominent cryptocurrency’s failure to surpass $25,000 after briefly hitting the mark. The majority of the decline has been ascribed to the Federal Reserve’s continuous efforts to manage inflation.
After a difficult first year, Bitcoin and the crypto market as a whole responded favourably to the July interest rate increases. Despite this, the asset has not replicated the Fed’s most recent move. Moreover, Bitcoin’s fortunes are linked to other assets such as stocks, with both assets demonstrating a high degree of connection.
Despite the fall, a portion of the market thinks Bitcoin still has the capacity to rise, compelling traders to keep their holdings in secret wallets in expectation of profiting when the currency begins a positive trend.
Despite a decline in Bitcoin deposits, exchanges in some countries continue to report growing website traffic.
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