Bernstein Research reveals what will start a new cryptocurrency rally

The active address count on the Bitcoin network has dropped to its lowest point in almost two years.

The billionaire declared that bitcoin had become less appealing.

Bloomberg predicts that crypto assets will become less appealing.

Interest in Ethereum staking will be spurred by the Fed's rate cut.

It will take years for laws to be put in place to regulate cryptocurrencies.

The number of active addresses on the Bitcoin network has dropped to its lowest level since July 2021 - 764,000 - despite the continued growth in the volume of transactions. Researchers from The Block have suggested that this is due to the high fees associated with transactions, which have caused people to become hesitant. Over the past year, the average blockchain transaction fee has risen from $2.5 to a peak of $16.08, likely due to the hype surrounding BRC-20 and Ordinals standard tokens.

Glassnode has observed that the buzz surrounding BRC-20 tokens has caused a surge in Bitcoin miners' commission income, which for the fifth time ever has surpassed the rewards from mining Bitcoin.

Bernstein Research predicts that a decrease in the US base rate and bank deposit rates will likely lead to an increase in public interest in Ethereum staking, which would result in more interest income. This could potentially initiate a new bullish trend in the crypto market.

Paul Tudor Jones, a billionaire and hedge fund manager, has long been an advocate of investing in Bitcoin. However, he now believes that the current regulatory and economic climate has made the first cryptocurrency less appealing. Jones has noted that regulators are putting more pressure on Bitcoin, and the decrease in inflation in the United States has made assets used to hedge against it less attractive.

Bloomberg predicts that the appeal of Bitcoin and other cryptocurrencies will diminish as crypto-regulations become stricter in the US and the risk of default rises.

At the trial of the lawsuit filed by Coinbase exchange, the US Securities and Exchange Commission (SEC) declared that the formation of laws to control cryptocurrencies will take years, but in the meantime, penalties will be imposed. The SEC labeled Coinbase's lawsuit as "unfounded".

An investigation by the US Federal Deposit Insurance Corporation (FDIC) into the failure of Signature Bank, which was friendly to cryptocurrencies, has been concluded. The bank's downfall was attributed to its inability to evaluate the risks associated with cryptocurrency deposits.

The European Union Council, consisting of 27 countries, has unanimously passed a bill to control the crypto-assets market (MiCA). Additionally, EU member states have agreed on new measures to fight money laundering.

According to PitchBook's report, crypto companies raised a total of $2.6 billion in investments during the first quarter of 2023, with 353 rounds of funding.

An update from Ledger caused alarm among crypto wallet owners, introducing the ability to store part of the seed phrase. Ledger clarified that subscribing to the Ledger Recovery service is voluntary, and the company has no remote management or device update capabilities.

Dogecoin's network transactions have outpaced those of Bitcoin and Litecoin, which the community attributes to the activity surrounding the DRC-20 standard tokens. These tokens enable the development of new digital assets on the blockchain.