A research firm is predicting a major crash for Bitcoin, potentially sending its price plummeting to $45,000.
Why the Crash?
10x Research, a firm that analyzes the crypto market, is pointing to several factors that could trigger a Bitcoin price drop. They’re seeing a decline in active Bitcoin addresses, which suggests a decrease in investor interest and activity.
The Numbers Don’t Lie
- In November 2023, the number of active Bitcoin addresses peaked at over 1.2 million.
- By September 2024, that number had dropped to just 596,940.
- This decline is happening alongside a decrease in short-term holders and profit-taking by long-term holders, indicating a potential market top.
More Bad News
- Bitcoin’s price has already fallen from its all-time high of over $73,000 to its current level of around $55,000.
- Investors are pulling money out of Bitcoin ETFs, with over $1.2 billion withdrawn in the last eight days.
- The weak US economy and ongoing futures liquidations are also contributing to the bearish outlook.
September: A Historically Difficult Month
Dan Tapiero, CEO of 10T Holdings, agrees that the crypto market is facing challenges. He notes that September has historically been a tough month for Bitcoin, often marked by increased selling pressure.
Despite the gloomy predictions, Tapiero remains optimistic about the long-term future of Bitcoin, encouraging investors to hold onto their assets. /p>
