The world’s first and largest cryptocurrency is making gallant steps towards the greens in a recent outturn of events. Bitcoin’s price is on the rise. Recent trading activities got BTC’s price to hit the $24,000 mark. This is a good record for BTC, the most popular cryptocurrency in the sector.
While Bitcoin has seen a dramatic increase in its value, it seems that the number of active addresses is on the decline.
It’s unlikely that sudden price growth for BTC has any connection to the overall crypto market. The price spikes are caused by external factors. However, there has been no significant increase in active wallets.
Records from on-chain reports show that Bitcoin’s number of active wallets is relatively low. Crypto Quant is an on-chain analytics provider that provided its data, which indicated a decline in active addresses. According to it, new futures contracts are being created as the prices continue to rise.
The current crypto futures market trend that shows increasing momentum is not supported by this. Because the price spike was not caused by an internal factor, it is difficult to know if the positive pressure will last.
Futures markets are seeing higher prices due to new contracts being opened. The futures market is also seeing short-term crypto investors take positions. These activities invariably cause price spikes. The sudden increase in purchasing positions is the result of this significant market price rise.
Bitcoin short-term speculative speculation could be reversed
The speculations in the futures markets could lead to a rapid reversal. This could cause prices to move in any direction.
An analysis firm Crypto Quant has also confirmed that directional betting is a risky strategy, especially when it comes to vital macro data. In the short-term, there are many opportunities for rapid directional changes. The importance of sustainability will depend on how you manage risk.
The current value of Bitcoin is just above $24,000. Bitcoin’s price could fluctuate due to the impact of macroeconomic activity during the week. The overall outcome will also be affected by the U.S. inflation figures due Wednesday.
On the other hand, August seems to have a better indication of BTC’s price prediction. The community predicts that Bitcoin will reach $28,000 by August’s end.
Featured Image from Pixabay. Chart by TradingView.com