The surge in active Bitcoin addresses raises doubts about the $100,000 target?

Despite Bitcoin (BTC) price dropping 4% from $97,000 within three days, recent on-chain activity has reached a six-month high, with a single-day active address count hitting 925,914, indicating market activity. However, this buzz did not lead to a price increase; instead, BTC fell nearly 2% the next day.

This phenomenon is similar to early March when the number of active addresses soared, but BTC price subsequently declined. Data shows that on the day of the on-chain activity surge, about 5,000 BTC flowed into derivatives exchanges, indicating an increase in speculative positions rather than spot demand. This suggests that the market may face leveraged selling, which could drive prices down.

Although there was a surge in spot demand for Bitcoin at the end of April, net inflows of funds have since leveled off, indicating diminished interest from retail investors. In early May, the number of active addresses plummeted, showing traders' hesitation at high price levels. Thus, the $100,000 target has become more speculative and harder to achieve.