Press Release Santiment, a cryptocurrency analytics platform, is telling Bitcoin (BTC) enthusiasts to exercise caution as several on-chain metrics for the digital asset raise concerns.
In a recent blog post, Santiment pointed out that Bitcoin’s network is not experiencing the same exponential growth it witnessed during the 2021 bull market.
How might this recent news affect the selection of the best cryptos to buy now?
The analysts explain that bull traps occur when prices surge rapidly without a corresponding increase in utility, a phenomenon observed in Q1 of this year. Santiment has examined the activity of unique Bitcoin addresses on the blockchain, noting that Bitcoin’s address growth is not as pronounced as it was during the previous bull market.
“Since the beginning of 2023, active addresses have risen +11% while BTC’s price has jumped +65%,” the firm stated.
The analytics firm also assessed Bitcoin’s circulation metric, which represents the number of coins transacted daily.
The measurement currently presents a less favorable outlook compared to its position at the beginning of the year when BTC was approaching a value of $16,000.
The number of unique tokens transacted daily has also decreased by 6.4% compared to January 1st.
While Santiment acknowledges the possibility of a Bitcoin comeback, it advises BTC enthusiasts to monitor on-chain metrics for signs of improvement.
The firm referenced other key on-chain indicators as well, such as whale activity and MVRV (market-value-to-realized-value), as important factors to consider.
In related news, Standard Chartered has made a bold prediction for Bitcoin’s price, forecasting it will reach $100,000 by the end of 2024.
Analyst Geoff Kendrick attributes this optimism to the collapse of several U.S. banks, which has strengthened Bitcoin’s case as a decentralized and scarce digital asset.
Kendrick, for one, believes the “crypto winter” is over and anticipates a bullish market cycle ahead.
The analyst also highlighted the positive impact of stablecoin outflows and speculation about the Federal Reserve’s monetary policy on Bitcoin’s price trajectory.
Standard Chartered’s prediction marks a significant shift from its December 2022 forecast, which anticipated BTC prices falling to $5,000.
As of this writing, Bitcoin has made a slight recovery trading at $28,322, up by 3% in the past 24 hours.
The total market capitalization stands at $1.18 trillion, with further sideways action anticipated this week.
Amid the hurdles outlined by Santiment, the cryptocurrency landscape continues to offer promising avenues for those seeking to capitalize on the cryptocurrency space’s ongoing long-term growth.
LHINU, INJ, DLANCE, CHZ, ECOTERRA, RNDR, and TARO, are some of the best cryptos to buy now based on fundamentals and/or technical analysis.
The Meme Coin with Utility: A Look at Love Hate Inu’s Impressive Presale PerformanceLove Hate Inu, a meme coin known for its distinctive vote-to-earn feature, recently marked a notable milestone by amassing over $6.9 million in its ongoing presale.
Currently, in its seventh stage, $LHINU is available at a price of $0.000135 per token.
What sets this digital currency apart is its dedication to establishing a user-friendly platform that emphasizes collective decision-making through voting. » …
Op-ed: Don’t blame memecoins and degens for crypto’s credibility problem
How Bitcoin could offer a safe haven in the face of a global inflation crisis
FTX files objection to Genesis after being snubbed in $0.00 claim estimate