Onchain demand remained soft throughout the slide, according to Glassnode data. The number of active addresses, a rough measure of how many users are actually trading, was around 618,000, in the middle of its recent range rather than breaking higher.
The value of coins moving across the network held close to $4.2 billion, just above the bottom of its range around $3.6 billion, indicating muted rather than rising activity, the firm said in a Monday report.
Total transaction fees, or what users pay to move money and a read on the competition for space in each block, continued to contract. Together, the three say demand has not increased, even with lower prices.
Adding to the caution, Strategy, the largest corporate holder of bitcoin, said on Monday it may sell more than a billion dollars of the token under a new program to shore up its finances, reversing founder Michael Saylor’s long-standing refusal to sell.
The prospect of these sales hangs over an already thin market. That leaves crypto where it has traded for weeks, bound by a strong dollar and a lack of new demand rather than a single shock.
The next tests are whether the dollar’s rise stalls and whether the yen’s decline forces Japan to step in, a move that some warn could dismantle the cheap yen borrowing that has long been used to fund risky trades around the world.
