Meanwhile, Bitcoin continues the bearish pattern as active addresses hit annual lows
The crypto market is still plagued by volatility concerns despite a short-term stability result. Most of the top 20 cryptocurrencies are seeing moderate losses and slight gains, but weekly results are still about 20% lower than last week.
However, the king of meme coins, Dogecoin (DOGE), has seen a wave of upward sentiment that hit its price on the 24. Currently, DOGE is trading at a little over $ 0.24 per coin, after falling below 0 just 24 hours before the price hit . $ 22 had fallen.
Still, the leading memecoin has lost more than a quarter of its value in the past week, a trend that is of concern across the crypto sector. The recent downward thrust is mainly due to China banning crypto mining activities in Sichuan province and a wave of regulatory scrutiny by the authorities.
But Dogecoin price rose despite the volatility-induced drop in price, largely due to a rebound in Ethereum prices that surged above the all-important $ 2,000 price point.
However, Dogecoin price movement still does not convince analysts and traders of a future trend reversal as most of the market is holding back rather than investing.
Uncertainty among retailers and merchants has also driven active Bitcoin addresses to their lowest levels in a year. According to the crypto analytics platform Santiment, the total number of active Bitcoin addresses fell below 900,000 in June 2021, which is the lowest level since July 2020.
“Bitcoin is back at $ 32.4,000 on Wednesday after bouncing above a high of $ 34.6k. It remains to be seen an increase in address activity. On the rolling 30-day scale of the daily active address scale, July 13, 2020 was the last time the BTC network was this low, ”the analytics firm noted.
The declining action in terms of active addresses is accompanied by a significant increase in liquidations across the crypto market. According to analysts, investments worth over $ 89 million have left Bitcoin and gone elsewhere.
“Bitcoin’s Fear, Uncertainty, and Doubt (FUD) remains high as traders are polarized as to whether prices can drop below $ 30,000. For now, however, prices have bounced back due to crowd fear. The markets are moving in the opposite direction of the expectations of the masses, ”added Santiment.
The fear and uncertainty caused the market capitalization of the entire crypto sector to shrink to currently $ 1.37 trillion, a value that has not been seen since February 10, 2021. But the data for the year to date (YTD) shows that the market capitalization of the sector has still increased by 50% – from around 770 billion US dollars on January 1st to the current level.
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