Like the The bear market continuesanalysts have weighed about the demise of the flagship cryptocurrency, Bitcoin, and by extension the crypto market. This time, another crypto analyst has explained what influences Bitcoin’s price drop.
Factors causing the decline of BTC
Bitcoin has notably fallen below the $27,000 level on October 12. Addressing this decline in a recent episode On the YouTube channel ‘Cheeky Crypto’, Crypto analyst Nick noted that there wasn’t much going on in the news and that the only thing that could have influenced Bitcoin’s decline was the US inflation datawhich was recently released with the CPI rising higher than expected.
He then analyzed the key on-chain metrics that could have influenced Bitcoin’s price. According to records of where he came from The Cheeky Crypto sitethere were 903,210 active addresses in the last twenty-four hours (he released the video on October 12).
The data also showed that 610,686 active addresses received Bitcoin during that period, and 560,331 active addresses sent Bitcoin during the same time frame, amounting to 265,000 transactions. What was more interesting, however, was the fact that only 23 million addresses contained BTC out of a total of 48.7 million existing addresses.
He indicates that these figures are important to provide insight Bitcoin’s adoption rate because you could easily assume that almost all existing Bitcoin addresses contain BTC. Meanwhile, less than half actually did so.
BTC price continues to fluctuate | Source: BTCUSD on Tradingview.com
More selling pressure for Bitcoin
On another factor that could cause the decline, he noted that retail investors had been selling in recent days. The positive point, however, as Nick highlighted, is that this sell-off suggests that institutional investors are accumulating again, considering that they once dumped their tokens on these retail investors.
Additionally, 108 wallets hold more than 10,000 BTC. These portfolios, which Nick labeled as the “master manipulators” of the price of BTC, are also experiencing a similar sell-off trend as these portfolios are down 8.47% over the past 180 days, indicating they are “aggressively” selling .
From the chart he shared you could see that the trend goes back to April 2023 (the peak of accumulation by these portfolios), when they started to cool off and dumped some of their holdings into the market. His analysis suggests there might be a bigger picture The decline of Bitcoin rather than any direct factor.
Despite this decline and the number of liquidations that have taken place, Nick is still bullish on Bitcoin could end this month in green. October is reported to be one of the best performing months for Bitcoin, with the crypto token finishing in the green over the past five years.
Featured image from The Independent, chart from Tradingview.com