2 years ago
Date: 20 Apr 2022 - 12:54

Despite being more than 3000 up in the past two days bitcoins price trajectory has been on the downfall on a more macro scale. According to a recent analysis the primary reason for this could be the massive drop in the network activity especially inflows and outflows to and from cryptocurrency exchanges.BTC Exchange Activity PlummetsIt was precisely six months ago when the largest cryptocurrency by market cap spiked to an alltime high of nearly 70000 perhaps fueled by the hype surrounding the firstever BTC futures ETF going live in the US.As the hype dispersed in the following months and other macropolitical events took center stage such as the US raising interest rates the rumored end of the COVID19 pandemic and the war between Russia and Ukraine bitcoin slumped in value. At one point it was down by more than 50 from its peak in just months.BTC rallied once again at the end of March and neared 50000 but the start of April was bearish once more and the asset fell below 40000 weeks later.The analysts from CryptoQuant believe there could be another reason behind these sporadic price movements the network activity. In a recent post they explained the correlation between BTCs price developments and inflowsoutflows from cryptocurrency exchanges.Essentially they argued that the declining network activity is connected to a rapid price fall which is confirmed by the graph below.Bitcoin Price vs Network Activity. Source CryptoQuantHistorically a huge drop in address counts inflows and outflows lead to a significant price correction for BTC.As the picture above demonstrates the network activity has dumped to its lowest levels since before the late 2021 rally.Network Fees Down TooAlthough the declining network activity could spell more trouble for BTCs upcoming price movements theres at least one positive outcome coming from this. The average transaction fees have declined to their lowest levels in about a year in line with the number of transactions.BlockchainCom shows that the average costs now stand around 1.4 and were even down to 1.04 a few days back. Just for reference they reached an alltime high during the April 2021 bull run at over 60. During November 2021 price spike the fees were around 3.Bitcoin Transaction Fees. Source

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Crypto Overview Show morenavigate_next

USDT Market Price Change (24H) Market Cap Last 7 Days
39997.79 $ 0 % 760.32 Billion $
3001.33 $ 0 % 360.05 Billion $
1.001 $ 0 % 82.65 Billion $
398.86 $ 0 % 59.29 Billion $
1.004 $ 0 % 50.96 Billion $
101.49 $ 0 % 33.28 Billion $
0.122 $ 0 % 31.52 Billion $
0.7024 $ 0 % 30.96 Billion $
82.96 $ 0 % 29.44 Billion $
0.9455 $ 0 % 29.42 Billion $

Crypto News Show morenavigate_next

Ripple cofounder Jed McCaleb has sold over 450 million XRP tokens so far this year and still has a balance of around 220 million tokens in his tacostand wallet according to data from XRP Ledger explorer XRPScan. McCaleb is said to have started working on Ripple back in 2011 and was part of its founding

TIME magazine features a cover story on Ethereum cofounder Vitalik Buterin.Buterin expressed his fears and hopes for the network.He plans to continue being more vocal about social change this year.Ethereum cofounder Vitalik Buterin was just featured on the cover of TIME Magazine. In Buterins interview with the leading magazine the programmer expressed his concerns and hopes for the Ethereum networ

Bitcoiners on Twitter Spaces share ways theyve been impacting by gambling with other cryptocurrencies instead of investing and saving only in bitcoin.This is a recording of a recent Twitter Spaces conversation about lessons users have learned from dabbling in other cryptocurrencies besides bitcoin.Listen To This Twitter SpacesAppleSpotifyGoogleLibsynOvercastTranscript006 Alex McShane ...Its too mu

With the start of the war between Russia and Ukraine cryptocurrencies have taken a few roles being sent as donations to aid the attacked nation but also in speculations that Russian oligarchs used such assets to bypass sanctions. However community insiders continue to refute these allegations and the latest to do so was FTXs founder 8211 Sam BankmanFried.SBFs FrustrationIts been almost a month sin

Singapore took the top spot by a landslide as the worlds most interested country in the upcoming Merge based on frequency of search terms in the weeks leading up to the event.

Tron has become the thirdlargest network by total value locked TVL in DeFi protocols a month after launching its algorithmic stablecoin USSD.The Justin Sunled protocol saw its TVL rise to over 6 billion within the last 30 days placing it behind BNB Chain with 8.8 billion and Ethereum with 71.3 billion TVL.CoinGecko a crypto data aggregator identified the launch of its algorithmic stablecoin USDD a

Global credit card underwriter and payment processing giant Mastercard announced Tuesday that its expanding its paymentsfocused consulting service by adding four new service areas for its customers including Open Banking Open Data Environment Social amp Governance ESG as well as Crypto amp Digital Currencies.Many individuals might not know that for more than 20 years Mastercard has offered a con

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The Mexican billionaire believes BTC price will bounce higher long term stating on Twitter that those who ldquobuy and holdrdquo onto their assets will ldquothank him later.rdquoBitcoin dropped to lows of 37300 on Monday before recovering slightly above 38k.Ricardo Salinas Pliego the third richest Mexican billionaire has said the current dip in Bitcoin prices is for buying more BTC and not selling

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Bitcoin dropped 2000 from 47500 to 45500 in four hours after news broke that the EU is set to cripple innovation in the blockchain space. Today the European Parliament voted in favor of outlawing 8216unhosted wallets within the European Union.Unhosted walletsAccording to their terminology an unhosted wallet is a noncustodial wallet managed entirely by an individual. This includes cold wallets such

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The U.S. tax service has used the same tactic to gain information from Circle Coinbase and Kraken in recent years as analysis finds that half of taxes on crypto go unpaid.

The Polkadot Hacker House event will take place at the Industrial City in Brooklyn New York.The Polkadot Hacker House whose firstever edition is set for New York City from 2328 June has opened applications for seasoned engineers and developers new to the Polkadot ecosystem.Interested parties are encouraged tonbspsign up for the six day event via thenbspPolkadot Hackathon North America for a chance

America needs to ldquoget very serious about its Bitcoin strategy as a nationstaterdquo said Pompliano.Bitcoin is a US technology ldquofrom an ethos standpointrdquo he added.Most of the selling pressure around BTC is from shortterm holders and institutional traders likely to be positioned at a loss.Antony Pompliano the cofounder of Morgan Creek Digital and ardent Bitcoin bull has urged the US to t