{"id":30941,"date":"2023-10-13T11:53:10","date_gmt":"2023-10-13T15:53:10","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=30941"},"modified":"2023-10-13T11:53:10","modified_gmt":"2023-10-13T15:53:10","slug":"crypto-analyst-breaks-down-the-factors-behind-the-bitcoin-price-decline","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/13\/crypto-analyst-breaks-down-the-factors-behind-the-bitcoin-price-decline\/","title":{"rendered":"Crypto Analyst Breaks Down The Factors Behind The Bitcoin Price Decline"},"content":{"rendered":"

As the bear market continues to linger<\/a>, analysts have weighed in<\/a> on the decline of the flagship cryptocurrency<\/a>, Bitcoin, and the crypto market, by extension. This time, another<\/a> crypto analyst has explained what is influencing Bitcoin\u2019s price decline.\u00a0<\/p>\n

Factors Causing BTC\u2019s Decline<\/h2>\n

Bitcoin notably dropped below the $27,000 level<\/a> on October 12. Addressing this decline in a recent episode<\/a> on the \u2018Cheeky Crypto\u2019 YouTube channel, Crypto analyst Nick noted that there wasn\u2019t much going on in the news and the only thing that could have affected Bitcoin\u2019s drop was the US inflation data<\/a>, which was recently released with the CPI rising higher than expected.\u00a0<\/p>\n

He then analyzed key on-chain metrics that could have affected Bitcoin\u2019s price. According to data he pulled up from Cheeky Crypto\u2019s site<\/a>, there were 903,210 active addresses in the last twenty-four hours (he released the video on October 12).<\/p>\n

The data also showed that 610,686 active addresses received Bitcoin during that period, and 560,331 active addresses sent Bitcoin during the same time frame, amounting to 265,000 transactions. What was, however, more interesting was the fact that only 23 million addresses held BTC out of the total 48.7 million addresses in existence.<\/p>\n

He stated that these figures were important to give an insight into Bitcoin\u2019s adoption rate<\/a> as one could easily assume that almost all the Bitcoin addresses in existence held BTC. Meanwhile, less than half actually did.\u00a0<\/p>\n\n

More Selling Pressure For Bitcoin<\/h2>\n

As to another factor that could be causing the decline, he noted that retail investors had been selling in the past few days. However, the silver lining, as Nick highlighted, is that this selloff suggests that institutional investors<\/a> are accumulating once more, considering that they had once dumped their tokens on these retail investors.\u00a0<\/p>\n

Additionally, 108 wallets hold over 10,000 BTC. These wallets, which Nick labeled as the \u201cmaster manipulators\u201d of BTC\u2019s price, are also experiencing a similar sell-off trend as these wallets are down 8.47% in the last 180 days, which suggests that they are \u201caggressively\u201d selling off.<\/p>\n

From the chart he shared, one could see that the trend dates back to April 2023 (the peak of accumulation by these wallets) as they have begun to cool off and dump some of their holdings on the market. His analysis suggests that there could be a bigger picture regarding Bitcoin\u2019s decline<\/a> rather than any immediate factor.\u00a0<\/p>\n

Despite this decline and the amount of liquidations that have occurred, Nick is still optimistic that Bitcoin could end this month<\/a> in the green. October is reported<\/a> to be one of the best-performing months for Bitcoin, with the crypto token ending October in the green for the last five years.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

As the bear market continues to linger<\/a>, analysts have weighed in<\/a> on the decline of the flagship cryptocurrency<\/a>, Bitcoin, and the crypto market, by extension. This time, another<\/a> crypto analyst has explained what is influencing Bitcoin\u2019s price decline.\u00a0<\/p>\n

Factors Causing BTC\u2019s Decline<\/h2>\n

Bitcoin notably dropped below the $27,000 level<\/a> on October 12. Addressing this decline in a recent episode<\/a> on the \u2018Cheeky Crypto\u2019 YouTube channel, Crypto analyst Nick noted that there wasn\u2019t much going on in the news and the only thing that could have affected Bitcoin\u2019s drop was the US inflation data<\/a>, which was recently released with the CPI rising higher than expected.\u00a0<\/p>\n

He then analyzed key on-chain metrics that could have affected Bitcoin\u2019s price. According to data he pulled up from Cheeky Crypto\u2019s site<\/a>, there were 903,210 active addresses in the last twenty-four hours (he released the video on October 12).<\/p>\n

The data also showed that 610,686 active addresses received Bitcoin during that period, and 560,331 active addresses sent Bitcoin during the same time frame, amounting to 265,000 transactions. What was, however, more interesting was the fact that only 23 million addresses held BTC out of the total 48.7 million addresses in existence.<\/p>\n

He stated that these figures were important to give an insight into Bitcoin\u2019s adoption rate<\/a> as one could easily assume that almost all the Bitcoin addresses in existence held BTC. Meanwhile, less than half actually did.\u00a0<\/p>\n

More Selling Pressure For Bitcoin<\/h2>\n

As to another factor that could be causing the decline, he noted that retail investors had been selling in the past few days. However, the silver lining, as Nick highlighted, is that this selloff suggests that institutional investors<\/a> are accumulating once more, considering that they had once dumped their tokens on these retail investors.\u00a0<\/p>\n

Additionally, 108 wallets hold over 10,000 BTC. These wallets, which Nick labeled as the \u201cmaster manipulators\u201d of BTC\u2019s price, are also experiencing a similar sell-off trend as these wallets are down 8.47% in the last 180 days, which suggests that they are \u201caggressively\u201d selling off.<\/p>\n

From the chart he shared, one could see that the trend dates back to April 2023 (the peak of accumulation by these wallets) as they have begun to cool off and dump some of their holdings on the market. His analysis suggests that there could be a bigger picture regarding Bitcoin\u2019s decline<\/a> rather than any immediate factor.\u00a0<\/p>\n

Despite this decline and the amount of liquidations that have occurred, Nick is still optimistic that Bitcoin could end this month<\/a> in the green. October is reported<\/a> to be one of the best-performing months for Bitcoin, with the crypto token ending October in the green for the last five years.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-30941","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=30941"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30941\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=30941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=30941"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=30941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}