The world’s largest cryptocurrency has been languishing around $47,000, well below early November’s highs of nearly $69,000.
The malaise surrounding Bitcoin runs far deeper than its price.
The world’s largest cryptocurrency has been languishing around $47,000, well below early November’s highs of nearly $69,000. A look under the hood helps explain why: Trading volumes have dried up, futures open interest is plunging and the number of active addresses has stalled out.
Taken together, the data paint a picture of diminished animal spirits after Bitcoin peaked following the fall launch of the first U.S. futures-tracking exchange-traded funds. Dip buyers – a once-reliable fixture in cryptocurrency markets – have yet to meaningfully reemerge even after a 33% drawdown. Meanwhile, after billions of dollars worth of leveraged positions were flushed out in last month’s flash crash, new investors have yet to fill the void.
“There was a lot of leverage in the system in