Can Bitcoin’s struggles and volatility of Q3 overshadow BTC’s Q4 performance

ambcrypto.com:

The third quarter (Q3) of 2022 has been one filled with intense scrutiny of crypto assets with Bitcoin [BTC] at the heart of it. The king of crypto asset, recently, witnessed a dip in its tractions due to developments on major blockchains such as Ethereum [ETH] and Cardano [ADA].

However, BTC still remains the largest market cap crypto asset by a country mile. While the coin’s price dipped again in the previous quarter, another strange pattern was observed from the on-chain data.

BTC witnessed a price slide in recent months on the back of sustained macro pressure. Another major sell-off was initiated last week after the Ethereum Merge was launched. However, in light of these events BTC witnessed a downward volatility trend. The average 30-day volatility for August 2022 saw a 20% dip from the 80% observed in June.

Source: Messari

One of the foremost impact of decreasing volatility of Bitcoin prices was pointed out by Messari in a recent report. A lower Bitcoin volatility resulted in lower liquidations across the larger crypto market.

In total, long liquidations in August 2022 amounted to over $5 billion, which is less than half as seen in June ($10.8 billion). The total short liquidations were also significantly lower. During August, short liquidations recorded around $3.5 billion as compared to over $6.6 billion in June.

Source: Messari

With the shifts in place, the BTC network also underwent certain transitions in the previous quarter. Additionally, there has also been a slowdown in funded addresses for the network. In Q3 2022, funded addresses only grew by 1.1% compared to 2.5% in Q2 2022. Moreover, the number of funded addresses experienced its first decline in August 2022 after 10 months of growth.

The network also witnessed