Bitcoin network activity ‘sharply declines’…“Calm before the storm before adjustment”
Activity throughout the Bitcoin network has noticeably contracted, and it is suggested that a price adjustment may come soon. On-chain data analysis firm CryptoQuant warned through its official X account, stating, “The BTC network activity index has fallen to 3470, recording the lowest level in the past year and a half,” adding, “It is calm now, but this may be the calm before the storm.”
This analysis is based on several indicators. First, demand for small investments of less than $10,000 has recently decreased by 5%, and the spot trading volume on centralized exchanges has hit its lowest in four and a half years. The fact that long-term holders have newly accumulated approximately 847,200 BTC could also lead to a decrease in liquidity.
Additionally, the size of open interest in Ethereum futures has reached an all-time high, and participation in the futures market by individual investors is shown to be significantly increasing. This indicates that while expectations for the short-term direction of the market are rising, it also implies the possibility of increased volatility and price adjustment.
Among market participants, there is a prevailing sentiment of both concern and anticipation that the current ‘quiet market’ may end and sudden price fluctuations could follow.