10x Research, a digital asset research platform for traders and institutions, has revealed an ominous prediction for the Bitcoin (BTC) price. Highlighting current market conditions and recent Bitcoin price dynamics, the research firm projects a massive price drop to $45,000 soon.
Bitcoin Price Drop to $45,000 Is Coming
10x Research has launched a report outlining several market factors that, when combined, paint a picture of a potential price decline to new Bitcoin lows. Although the broader crypto market goes through a period of correction and volatility, 10x Research believes Bitcoin could fall as low as $45,000 this cycle.
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The reason for this prediction was attributed to recent changes in active Bitcoin addresses. Markus Thielen, head of research at 10x Research, explained the reasons for this BTC pessimistic forecast. Thielen mentioned that after Bitcoin addresses peaked in November 2023, they witnessed a sharp decline towards the end of Q1 (first quarter) of 2024.
According to Messari ReportsOn November 20, 2023, the number of active Bitcoin addresses rose above 983,000, reaching as high as 1.2 million at some point. The network remained stable in this range until April. However, starting September 2, 2024, active addresses plummeted dramatically to 596,940.
This drop in Bitcoin addresses indicated a reduction in network activity and a possible decrease in interest and demand among investors. Furthermore, Thielen revealed that short-term holders began selling their BTC in April, while long-term holders took their profits, suggesting that the market had reached the top of its cycle.
Additionally, Bitcoin’s price has fallen from its all-time high above $73,000 in March to its current level of $55,246, according to CoinMarketCap. This price drop is in line with the decrease in active addresses and broader market volatility.
10x Research also reported that outflows in spot Bitcoin exchange-traded funds (ETFs) contributed to BTC downward pressure and led to its bearish price projection. Over the past eight days, Spot Bitcoin ETFs recorded A staggering $1.2 billion in outflows from the 11 listed US Bitcoin ETFs. This massive liquidation is currently the longest streak of outflows since the launch of Bitcoin ETFs on January 10, 2024.
Furthermore, the current state of the United States (US) economy also paints a possible bearish image for Bitcoin. The weak US economy and ongoing futures sell-offs are among the many factors that 10x Research believes could push Bitcoin price down for US$45,000.
BTC faces toughest month in September
In an X (old Twitter) publishDan Tapiero, founder and CEO of 10T Holdings, addressed the current challenges in the crypto market. Tapiero noted that September has been historically difficult for Bitcoin, often marked by underperformance or increased selling pressures.
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He revealed that Bitcoin and Ethereum (ETH) have been stuck in a period of “painful consolidation” since March. Despite Bitcoin’s Underperformance in SeptemberTapiero remains confident that the market is gearing up for a major uptrend, advising investors to HODL their assets.
Featured image created with Dall.E, chart from Tradingview.com