Ever since the contemporary takes have strengthened their existence, the primitive tokens appear to have lost their charm. The traders are hysterically behind these new tokens which are marking 2000% to 3000% growth in just a few days, while their use cases and the fundamentals are not properly known. And this could be the reason, a steep drop in the on-chain fractals is compelling the Bitcoin (BTC) price to hover within a limited range.
A popular on-chain platform, Santiment, recorded a major drop in some fractals of Bitcoin that suggests traders are opting out of the network. The unique BTC address that interacts with the Bitcoin network has dropped to a 22-month low.
The drop in unique addresses has dropped to some serious levels that were not visible since July 2021. Currently, less than 800,000 daily unique addresses are transacting on the network, which once soared above 1.1 million. Besides, the supply on the exchanges has also dropped heavily, which induces some faith in the impending bull rally.
Despite the traders expecting a long-term gain as they hold the token out of the exchanges, yet the volatility of BTC has been marking significant lows. As per the data from an on-chain platform, Intotheblock, the BTC volatility reaches historical lows. The 60-day annualized volatility has fallen below 40% for the 8th time in the past 5 years.
Besides, the volume remains below this level for 5 weeks which has resulted in a 46% gain. However, the price has also experienced a 50% crash, 3 times following these conditions. Therefore, if history repeats, a notable rise in the Bitcoin (BTC) price may be expected that may follow a major correction.
