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Bitcoin wallet activity reaches 5-month high despite price downturn

EditorPollock Mondal
Published 14/09/2023, 00:32
© Reuters.
BTC/USD
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Despite Bitcoin's less-than-stellar performance in recent months, investor activity in the digital asset has not waned. On-chain data aggregator Santiment reported on Tuesday that Bitcoin wallet activity has seen a significant uptick, reaching its highest level in five months, even as the cryptocurrency's price continues to struggle.

The number of unique daily Bitcoin addresses active has risen from around 860,000 to over 1.1 million in September, according to Santiment's report. This surge in wallet activity comes despite Bitcoin's price currently straining below $26,000 and the market experiencing heavy fluctuations due to regulatory uncertainties.

Investors seem undeterred by the BTC price downtrend and are potentially using the current low prices as an opportunity to increase their holdings. The filing for a Spot Bitcoin ETF by asset manager Franklin Templeton also likely contributed to the increased wallet activity as investors rushed to take advantage of a brief uptick in the digital asset's price.

Despite the rise in wallet activity, Bitcoin's price remains under pressure, suggesting that this metric may not have a significant impact on the cryptocurrency's value. Investors are continuing to use the network despite low prices, indicating persistent interest in the digital asset.

As of now, Bitcoin is trading just above $26,000, with modest gains of 0.64% recorded yesterday. The cryptocurrency is still below its 50-day and 100-day moving averages, suggesting it might continue to trade sideways for most of September.

Investors are eagerly awaiting decisions on numerous Spot BTC ETFs filed by fund managers. The outcomes of these filings could be a defining factor for Bitcoin's price trajectory going forward. However, no major moves are expected for the digital asset in the immediate future given its current performance and resistance levels between $26,000 and $27,000.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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