The post Is This the Calm Before the Crypto Storm? appeared on BitcoinEthereumNews.com.

Recent data from CryptoQuant provides crucial insights into the current market dynamics, particularly focusing on Bitcoin’s performance. Following a failed attempt to breach the $72,000 mark, there’s been a noticeable downturn in investment sentiment among market participants.  This trend is evidenced by the significant decline in the number of active Bitcoin addresses—a key indicator of market engagement. Active addresses peaked in March but have since dwindled, illustrating a broader disinterest as Bitcoin remains trapped in a cycle of correction and lateral trading over the last quarter. Implications for Altcoins and Market Adjustment The ripple effects of Bitcoin’s stagnation extend beyond the flagship cryptocurrency to impact the broader altcoin market. Altcoins, which often echo Bitcoin’s market movements but with amplified intensity, are experiencing even lower investor sentiment.  The adjustment period in the crypto market is characterized by a decline in the psychological engagement of investors, which traditionally signals a nearing end to such phases. However, pinpointing the exact timing for a turnaround remains a challenge. Weakening investment sentiment among $BTC & altcoin market participants “After reaching a peak in March, it has decreased significantly due to #Bitcoin‘s correction & sideways movement over a period of three months.” – By @DanCoinInvestor Link 👇https://t.co/4dUs6tzkCx — CryptoQuant.com (@cryptoquant_com) June 12, 2024 CryptoQuant analysts suggest that a significant shift in Bitcoin’s trajectory could set the stage for movement across the altcoin spectrum. The sentiment shared across trading desks is one of cautious anticipation.  The market is poised for a directional shift, which is expected to unfold in the latter half of 2024, dictating the subsequent movements of both Bitcoin and its altcoin counterparts. This period of consolidation could indeed be the calm before a decisive storm, setting the stage for the next major rally or correction in the crypto universe. Source: https://blockchainreporter.net/bitcoin-stalls-at-72k-is-this-the-calm-before-the-crypto-storm/

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Filed under: News - @ June 13, 2024 8:08 am