The demand for cryptocurrencies continues to fall both in the market and according to on-chain analytics. Experts at CryptoQuant point out the weakening pressure from buyers, accompanied by a decrease in blockchain activity.
This is reported by Business • Media
Decline in Purchasing Activity on Binance and On-Chain
According to analysts, a decline in purchasing volumes on the Binance futures market was recorded as early as August. Despite cryptocurrency prices showing an increase, the total volume of market positions began to decrease. This trend resembles the situation in 2021 when the phase of asset distribution among market participants began.
Furthermore, analysts note a significant reduction in the number of active addresses in the blockchain network. This metric, in their opinion, directly correlates with activity in the over-the-counter (OTC) market. The decrease in the number of active addresses indicates a retreat of traders and an overall decline in market viability.
Market Dynamics and Prospects for the Crypto Market
“A significant trend change would need to occur at least within the orange zone. However, the price dynamics instead mirror a path similar to that of 2021. From this perspective, movement after the orange zone can be interpreted as the final phase of distribution,” the statement reads.
Experts at CryptoQuant also emphasize that it is currently difficult to say whether the classic four-year market cycle has changed. However, this question is not currently decisive for most market players.
Previously, Galaxy Digital noted the uncertainty surrounding the future of Bitcoin in 2026.