Bitcoin Holds Above $100,000 Despite 2.4% Weekly Decline

Bitcoin's price action in June has shown moderate fluctuations, ranging from approximately $100,500 to $111,000. While the cryptocurrency has not exhibited the same impulsive momentum seen in previous bullish cycles, it has managed to sustain its value above $100,000. Over the past week, Bitcoin has demonstrated relative price stability with intermittent bullish movements, trading within a narrow range. This price behavior reflects a mix of optimism and caution among market participants.

On-chain analytics firm Alphractal recently published findings indicating that Bitcoin's active addresses are at levels similar to those seen in 2020. The Active Addresses metric measures the number of unique addresses actively engaged on the Bitcoin network within a specific timeframe. An address is considered "active" if it is involved in receiving or sending Bitcoin during that period. According to Alphractal, the current market conditions, characterized by political uncertainty and social fear, mirror those of 2020, which also saw a global pandemic. These factors have influenced market engagement, leading to the current levels of active addresses.

Alphractal suggested two potential reasons for the observed lack of enthusiasm among investors. Firstly, investors may have become disillusioned with the current state of the crypto market, despite Bitcoin's value remaining comfortably above $100,000. Secondly, the relative inactivity could be attributed to a strong long-term conviction in Bitcoin as a store of value. However, Alphractal dismissed this second reasoning, citing low readings from on-chain volume and spot volume indicators, which suggest minimal global interest in the cryptocurrency. The firm explained that Bitcoin's sustained value above $100,000 indicates that only the most resilient investors are taking advantage of the long-awaited $100,000 per BTC milestone.

As of the latest data, Bitcoin is valued at approximately $103,290, reflecting a slight over 1% price decline in the past 24 hours. Over the past seven days, the price of BTC has decreased by about 2.4%. This price stability, coupled with the current levels of active addresses, suggests a cautious yet optimistic outlook among market participants. The lack of impulsive momentum and the sustained value above $100,000 indicate a market that is carefully navigating through current uncertainties while maintaining a long-term bullish perspective on Bitcoin.