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10x Research, a digital asset research platform for traders and institutions, has revealed an ominous forecast for the price of Bitcoin (BTC). Highlighting current market conditions and Bitcoin’s recent price dynamics, the research firm projects a huge price crash soon to $45,000.
Bitcoin $45,000 Price Crash Coming
10x Research has one report which outlines several market factors, which, when combined, paint a picture of a potential price drop to new lows for Bitcoin. While the broader crypto market is undergoing a period of correction and volatility, 10x Research believes Bitcoin could fall as low as $45,000 this cycle.
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The reason for this prediction has been attributed to recent changes in Bitcoin’s active addresses. Markus Thielen, head of research at 10x Research, has explained reasons for this pessimistic BTC forecast. Thielen said that after Bitcoin addresses peaked in November 2023, they witnessed a sharp decline later in the first quarter (Q1) of 2024.
According to Messari’s reportsOn November 20, 2023, Bitcoin’s active address account rose above 983,000, reaching as high as 1.2 million at one point. The network remained stable within this range until April. However, from September 2, 2024 active addresses have plummeted drastically to 596,940.
This decline in the number of Bitcoin addresses indicated a reduction in network activity and a possible decline in interest rates and demand among investors. Furthermore, Thielen revealed that short-term holders had started selling their BTC in April, while long-term holders took in their gains, indicating that the market had reached its cycle top.
Furthermore, Bitcoin’s price fell from its all-time high above $73,000 in March to the current level of $55,246, according to CoinMarketCap. This price drop is consistent with the decline in active addresses and broader market volatility.
10x Research also reported that outflows in Spot Bitcoin Exchange Traded Funds (ETFs) contributed The downward pressure of BTC and led to their pessimistic price projection. In the last eight days Spot Bitcoin ETFs included as much as $1.2 billion in outflows from the 11 publicly traded US Bitcoin ETFs. This massive liquidation is currently the longest outflow since the launch of Bitcoin ETFs on January 10, 2024.
Moreover, the current state of the US economy also paints a possible situation bearish picture for Bitcoin. The weak U.S. economy and ongoing futures liquidations are among many factors that could be possible, according to 10x Research pushing down the price of Bitcoin up to $45,000.
BTC represents the toughest month in September
In an X (formerly Twitter) afterDan Tapiero, the founder and Chief Executive Officer (CEO) of 10T Holdings, addressed the current challenges in the crypto market. Tapiero noticed that September has historically been difficult for Bitcoin, often characterized by poor performance or increased selling pressure.
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He revealed that Bitcoin and Ethereum (ETH) have been stuck in a “painful consolidation period” since March. Despite Bitcoin’s underperformance in SeptemberTapiero remains convinced that the market is gearing up for a major bullish trend and advises investors to HODL their assets.
Featured image created with Dall.E, chart from Tradingview.com