A week that started with optimism for the cryptocurrency market ended in a decline. Brian from Santiment Network described the main reasons for this development.
Economic Instability and Its Impact
Global economic uncertainty, exacerbated by geopolitical tensions between the USA and Canada, has caused investor worries. In response, gold has reached a historic high, surpassing $3,111. As a traditional safe asset, gold has driven investors away from digital and traditional markets towards precious metals.
Network Indicators and Social Sentiment
Bitcoin network analysis shows a decrease in transaction volume and active addresses, indicating a temporary reduction in network usage. Multiple metrics point to relative network weakening despite the absence of significant selling pressure.
Behavior of Large and Retail Investors
Data analysis shows that large investors were accumulating Bitcoin while retail investors were selling. This divergence could indicate potential future market corrections, as experienced investors anticipate market recovery.
Amid economic uncertainty, the cryptocurrency market is experiencing a challenging period. While Bitcoin maintains relative stability, other coins are subject to larger fluctuations. Monitoring key indicators can help understand future market steps.
