Bitcoin at $30,000: Examining the curious market conditions before BTC’s rise
For the first time in ten months, Bitcoin [BTC] hit and rose above the $30,000 mark. The increase in the king coin’s price has been a significant milestone for the cryptocurrency market, sparking renewed interest and speculation among investors and traders.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
However, the recent surge was not without the impact of broader market dynamics and supply and demand factors.
According to Santiment, there were unusual activities going on in the market just before BTC edged above $29,200. A notable part of this input was the way mid-sized active addresses rose from a notable dip in less than an hour.
Source: Santiment
Active addresses indicate the level of investor interaction within a network. In doing this, it measures the number of unique addresses involved in BTC transactions daily. Information from the Santiment platform showed that active addresses around the period on 10 April were down at 24,600.
But before the end of the same day, the same metric rose as high as 116,000. Over time, prices follow a wide-scale jump in active addresses. Therefore, it can be argued that the predictive metric made a notable contribution to BTC’s hike.
This price rise means that BTC’s Year-To-Date (YTD) performance has hit 79%, much to the dismay of analysts who opined that it would struggle to replicate the Q1 form. However, New York Digital Investment Group (NYDIG) released a research paper explaining Bitcoin’s model of exempting itself from correlating with other markets.
Source: NYDIG
According to the paper, NYDIG noted that halving cycles have returned. It noted that past Bitcoin supply subsidy has been vital to a spike in the price action. The Bitcoin investment management firm
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