BTC Price Increase in 2021Lacks Bull Market Characteristics
According to reports, market analysis pointed out that although the BTC price has risen by nearly 50% so far this year, both the on-chain trading volume and th…
According to reports, market analysis pointed out that although the BTC price has risen by nearly 50% so far this year, both the on-chain trading volume and the increase of active addresses lack the characteristics of bull market.
Viewpoint: BTC’s online trading volume and active address are short of bull market characteristics
Analysis based on this information:
Market analysis has highlighted that although the Bitcoin (BTC) price has increased by almost 50% this year, the on-chain trading volume and increase of active addresses lack the characteristics of a bull market.
According to reports, the increase in BTC price has been fueled by various factors such as corporate investments, institutional adoption, and mainstream acceptance. Despite these developments, the market analysis indicates that the current increase in BTC price is not characteristic of a bull market.
One of the main indicators of a bull market in cryptocurrency is the on-chain trading volume. The on-chain trading volume represents the amount of BTC that is being traded on the blockchain in real-time. As compared to the previous bull run, the current on-chain trading volume has not increased significantly, and there is no substantial increase in the number of transactions.
Another market indicator that defines a bull market is the increase in active addresses on the blockchain. When there is an increase in unique active addresses, it means that more people are investing and transacting in BTC. However, despite the increase in the BTC price, the active addresses have remained stable, which suggests that adopted users are not increasing at a proportional rate.
Several market experts propose that the lack of significant on-chain trading volume and increase in active addresses may indicate that the current BTC price increase is speculative or demand driven. A similar price surge occurred in 2017 when BTC hit an all-time high but was followed by a significant market correction.
In summary, while the increase in BTC price is currently evident, the lack of significant on-chain trading volume and active addresses present concerns that it may not indicate a bull market. Experts suggest that the increased adoption of BTC and increase in on-chain trading volume are necessary for a long-term and sustainable increase in the BTC price.
In conclusion, despite the current BTC price surge, the cryptocurrency industry should continue to monitor the BTC market trends to determine whether it is a sustainable market or a speculative bubble.
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