Bitcoin declined on Monday. It is on track to record its fourth consecutive day of losses at a time when activity on its network keeps indicating that the bear market is still very much alive.
BTC/USD decreased by 3.5% to $22,994. According to a study from cryptocurrency research firm Glassnode, Long-term bitcoin investors, or holders, who have the greatest confidence, have powered a large portion of the recent gain. However, whether any move higher has stayed strong depends largely on new investors and the ongoing Bitcoin network According to on-chain activity, HODLer dominated. As of yet, there has not been any noticeable return of fresh demand.
However, the absence of fresh investment in bitcoin is not the only indicator of a hostile atmosphere for bitcoin fans. At 13.4 BTC per day, or around $22,983.80, transition costs are still in the bear-market territory and very near to the lowest values of the year.
Should We Expect a Recovery?
Glassnode said that a rise in transition fees would likely indicate recovery as bull markets often retain increased charge rates. The recent decline in the value of bitcoin comes only a few days after it attracted investor attention with a significant rise to over $24,000 on wagers that the U.S. interest rate rises were about to come to a halt. Last week, Federal Reserve Chairman Powell suggested that the institution start to slow down its tightening of monetary policy, which has depleted liquidity and hampered growing markets like cryptocurrency, to reevaluate how rate rises affect the economy and inflation.
Investors anticipate no additional rate increases until the Fed raises interest rates to 3.3 percent by the end of the year from roughly 2.375 percent today. Preston Caldwell, Head of U.S. Economics at Morningstar, stated in research this week that they project the federal-funds rate will decrease from a peak of 3 percent at the start of 2023 to 1.5 percent by 2024.