The largest and most influential cryptocurrency in the world, Bitcoin, had a mild decline over the weekend. Sellers became active after buyers failed to sustain a break above $45,000 twice last week. After a drop from the $45,855 level, Bitcoin stayed above the $41,914 support. But there seems to be a fresh wave of hope moving into the new week.
According to On-chain analytics firm, Saturday, February 12, 2022, was the highest number of active addresses (1.08 million) recorded in 2022. A rise in Bitcoin daily active addresses might be a positive sign for its market price.
The uptick in participants transacting on the network is a sign of increased utility, a pointer to upsurge prospects. Bitcoin continues to demonstrate a solid increase in utility, with the biggest activity day of the year being February 12, when 1.08 million addresses were transacted on the Bitcoin blockchain.
Market traders have already taken profit on that move. Bitcoin hit a low of $41,570 in the early hours of today, but it has since climbed to $42,160 at press time.
The meeting of the United States Federal Reserve will take place today and the commission could potentially discuss the effect of digital assets or cryptocurrency on the financial market. Another event that could shape the direction of both the crypto and traditional markets is the announcement of a Central Bank Digital Currency (CBDC). The recognition of blockchain technology, which is the foundation of any CBDC, should attract more retail traders and investors to the industry as the government officially implements the concept. These will likely positively affect the crypto market and provide additional buying power that Bitcoin drastically needs right now.
Bitcoin market price is still a few miles away from the previous week’s high of $45,855 amid investors’ concerns about ongoing inflationary pressure and growing tensions over a possible conflict between Ukraine and Russia; FUD is currently at an all-time-high. Therefore, all investors and traders are expected to do their own research and analysis.
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