Market Wrap: Cryptos Mixed as Bitcoin Trades Near $40K

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Bitcoin (BTC) stabilized around the $40,00 price level, the midpoint of a three-month price range.

The cryptocurrency is on track for a 15% decline this month, although some analysts expect a brief relief bounce, similar to what occurred in late February and March.

Most cryptocurrencies were mixed on Thursday, indicating uncertainty among traders. Ether (ETH), the second-largest cryptocurrency by market capitalization, is also trading around the midpoint of its three-month price range around $3,000. ETH is down 13% so far this month, compared with an 11% drop in Solana's SOL token and 4% drop in DOGE over the same period.

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Both the S&P 500 and Nasdaq indices were also higher on Thursday, albeit stuck near the lows of their three-month trading range, indicating lower volatility relative to cryptos. Meanwhile, both the U.S. dollar and gold ticked higher.

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Bitcoin network activity stable, for now

Activity on the Bitcoin blockchain continues to hold up despite BTC's 40% price dip from the November peak around $69,000. Still, it remains uncertain whether transaction activity on the blockchain leads or reacts to changes in crypto prices.

For now, high transaction activity does not indicate a breakdown in bitcoin's fundamentals (use of the blockchain), according to some analysts.

The chart below plots the daily amount of BTC transferred as a percentage of total supply. CryptoQuant distinguishes high transaction activity as when the indicator is above its historical average. Further, the 30-day moving average remains elevated in a high range, unlike the 2018 bear market – a period when activity declined with price.

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