Coinbase Thinks Bitcoin Has Already Hit Its Bottom

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Recently, the value of the flagship cryptocurrency has been at a two-year low. Representatives of the cryptocurrency platform Coinbase shared their opinion on where Bitcoin will go in the future. According to them, the end of 2022 showed that bitcoin has finally found the bottom and in the future it can start its upward movement at a slower pace.

Experts from Coinbase argue their opinion with an increase in the number of unprofitable addresses in the network. At the end of December last year, less than half of the wallets were profitable, which is quite obvious given the 70%+ drop in BTC over the past year.

2023 started for BTC with values above $16,000 and now the price has almost reached $17,000. In the near future, the flagship cryptocurrency can overcome this barrier and reach a new goal of $18,000.

A similar situation was observed in January 2015 and 2018. Despite this, Coinbase still leaves the possibility that BTC could sink again in the coming weeks, however, according to their assumptions, it is unlikely to fall below the $16,000 level.

In addition to the fact that the majority of cryptocurrency wallets on the network are marked as unprofitable, today there has been a decrease in activity from investors. The latter are not particularly eager to invest their financial resources in cryptocurrencies. This is evidenced by the statistics provided by the BitinfoCharts service.

The number of transactions on the blockchain has also dropped significantly. It fell to the level of 187.361. Such an indicator was last seen in January 2022, which indicates the achievement of an annual minimum.

Representatives of the analytical center Santiment have previously noticed that the actions of institutional investors have become more passive, and a sharp number of transactions for amounts exceeding $1,000,000 indicates the absence of high volatility in January.

We previously reported that Coinbase was ordered to pay a $50,000,000 fine for failing to improve its security systems in a timely manner. The New York State Department of Financial Services noted that the cryptocurrency exchange has already received a warning, but decided not to improve its system for registering new accounts. Users can create accounts and, as a result, due to the lack of proper verification, they have the opportunity to launder money obtained illegally.

In this regard, Coinbase has been accused of facilitating the development of criminal activity in the expanses of digital assets. They will have to invest another $50,000,000 to improve their security systems.