Bitcoin panic: Network contraction points to looming market crash

The Bitcoin (BTC) network is showing signs of contraction, which could lead to a potential price drop.

As the number of wallets decreases, it indicates a lower demand for the cryptocurrency, and a decrease in user adoption rates, according to the network analysis by crypto market expert Ali Martinez on May 8.

When there are fewer wallets, it means that fewer people are actively using Bitcoin. In turn, this lowers the demand for the cryptocurrency, which can lead to a drop in price. This trend is particularly concerning since the price of Bitcoin has already been volatile in recent months.

Finally, Bitcoin continues to experience a bearish trend, with the cryptocurrency currently trading at $27,973, representing a 2.87% decline in the past 24 hours. Over the past week, Bitcoin has also declined by 1.97%, indicating the continuation of a bearish market.

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