Bitcoin Nears 'Crunch Time' as Ethereum Wallet Activity Explodes: What's Going On?

Why Cowen Says Bitcoin Is Approaching Crunch Time

Cowen said in a YouTube video that Bitcoin is following the same pattern it has in every prior midterm year. 

A low forms in summer, volatility dies through August and September, then something happens in late fall that wakes the market up and starts the next bull run.

He puts social interest in perspective. Bitcoin’s social risk reading sits at 0.2 today, the same level it sat at in August 2018. 

Four years ago at the same point in the cycle, that reading was double. To most people it feels like crypto is dying, but Cowen said this is exactly how prior bottoming phases have felt from the inside.

He expects one more leg down before the bull market begins, with October as the most likely month for the cycle low. 

On-chain indicators like the MVRV Z-score have not yet reset to levels that historically mark major bottoms.

“It’s almost crunch time,” Cowen said. “I don’t think that event has happened yet, but I think it’s going to happen relatively soon,” he added.

Why Ethereum Wallet Activity Exploded

Santiment flagged on X that Ethereum saw 989,500 active addresses in 24 hours, its highest daily activity since March, while price holds steady near $1,870.

The firm pointed to three specific drivers:

Santiment described the move as existing wallets waking up, rotating capital, and testing rails again rather than entirely new users entering the market.

Bitcoin and Ethereum Analysis: Support and Resistance Levels

Image: Shutterstock