10x Research, a digital asset research platform for traders and institutions, has revealed a worrying forecast for the Bitcoin (BTC) PriceHighlighting current market conditions and recent Bitcoin price dynamics, the research firm projects a massive drop in prices at $45,000 soon.
Bitcoin price crash of $45,000 is looming
10x Research has published a report describing several market factors that, when combined, paint a picture of a potential Bitcoin price drop to new lows. While the broader cryptocurrency market goes through a period of correction and volatility, 10x Research believes Bitcoin could fall as low as $45,000 in this cycle.
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The reason for this prediction has been attributed to recent changes in active Bitcoin addresses. Markus Thielen, research director at 10x Research, has explained the reasons for this. Pessimistic BTC PredictionThielen mentioned that after Bitcoin addresses peaked in November 2023, they witnessed a sharp drop later in the first quarter (Q1) of 2024.
According Messari ReportsOn November 20, 2023, the count of active Bitcoin addresses rose above 983,000, even reaching 1.2 million at one point. The network remained stable within this range until April. However, as of September 2, 2024, Active addresses have plummeted drastically to 596,940.
This drop in Bitcoin addresses indicated a reduction in network activity and a possible decrease in interest and Demand among investorsFurthermore, Thielen revealed that short-term holders had started selling their BTC in April, while long-term holders took their profits, suggesting that the market had reached the top of its cycle.
In addition to this, Bitcoin’s price fell from its all-time high of over $73,000 in March to its current level of $55,246, according to CoinMarketCap. This price drop aligns with the decline in active addresses and broader market volatility.
10x Research also reported that Spot Bitcoin exchange-traded fund (ETF) outflows have contributed to BTC bearish pressure and led to its bearish price projection. Over the past eight days, Bitcoin spot ETFs recorded The massive $1.2 billion in capital outflows from the 11 publicly traded Bitcoin ETFs in the United States. This massive liquidation is currently the longest series of capital outflows since the launch of Bitcoin ETFs on January 10, 2024.
In addition, the current state of the United States (US) economy also paints a possible Bearish outlook for bitcoinThe weak US economy and continued futures sell-offs are among the many factors that 10x Research believes could Pushing the price of Bitcoin down up to $45,000.
BTC faces its most difficult month in September
In an X (formerly Twitter) mailDan Tapiero, Founder and CEO of 10T Holdings, addressed the current challenges in the cryptocurrency market. Tapiero noted that September has been historically difficult for Bitcoin, often marked by poor performance or increased selling pressure.
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He revealed that Bitcoin and Ethereum (ETH) have been stuck in a period of “painful consolidation” since March. Despite Bitcoin’s poor performance in SeptemberTapiero remains confident that the market is gearing up for a major uptrend and advises investors to hold their assets.
Featured image created with Dall.E, chart from Tradingview.com
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