On-chain demand remained weak throughout the decline, according to Glassnode data. The number of active addresses, a rough indicator of how many users are actually transacting, stood at around 618,000, in the middle of its recent range rather than rising higher.
The value of coins moving through the network remained near $4.2 billion, just above the bottom of its range of about $3.6 billion, pointing to moderate rather than increasing activity, the company said in a report on Monday.
Total transaction fees, or what users pay to move funds and a read competition for space in each block, continued to contract. Together, the three say demand has not recovered even with the lowest prices.
Adding to the caution, Strategy, the largest corporate holder of bitcoin, said on Monday it could sell more than $1 billion of the token under a new program to shore up its finances, a reversal of founder Michael Saylor’s long-standing refusal to sell.
The prospect of those sales looms over an already small market. That leaves cryptocurrencies where they have traded for weeks, trapped by a strong dollar and a lack of new demand rather than a single shock.
The next tests are whether the dollar’s rally stalls and whether the yen’s slide forces Japan to intervene, a move that some warn could undo cheap yen borrowing long used to finance risky trades around the world.
