Best Crypto to Buy Now 25 April – Injective, Chiliz, Render
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
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