Bitcoin’s active addresses drops to 1.1 million
The post Bitcoin’s active addresses drops to 1.1 million appeared on BitcoinEthereumNews.com.
Journalist Posted: February 20, 2025 BTC has gained by 1.68% over the past 24 hours, at press time. Bitcoin’s active addresses have declined, reflecting weakening network activity. Since hitting a new high nearly a month ago, Bitcoin [BTC] has struggled to maintain upward momentum. In fact, over the past two weeks, BTC has traded below $100k. These struggles for Bitcoin are not isolated to its price charts only but also to active users. Inasmuch, popular crypto analyst Axel Adler has suggested that Bitcoin’s active addresses have been in a free fall. Source: CryptoQuant According to him, after BTC prices reached $107k a week ago, the volume of active addresses on the network has declined. Bitcoin’s active addresses have dropped below the annual average, reaching a low of 1.1 million. This decline is concerning for BTC, as it suggests lower network activity with fewer investors actively participating. Source: Santiment AMBCrypto observed this decline in network activity as Bitcoin’s NVT Ratio has spiked from 89 to a historically high level of 978. When the NVT Ratio hits such extreme levels, it implies that BTC is experiencing a speculative price pump and it could be unsustainable. In previous cycles, price corrections have followed extremely high NVT ratios. Source: Bitbo Equally, declining network activity reflects low demand among investors. This reduced demand is evidenced by the drop in daily transaction volume from 402k to 350k over the past three weeks. A decline in transaction volume confirms our earlier observation that fewer users are interacting with the network. Historically, rising active addresses coincide with bull markets, while a decline precedes market corrections, especially when combined with low daily transaction volumes and a rising NVT Ratio. Any impact on BTC? The decline in active addresses has coincided with increased volatility for Bitcoin. As a result,…
Filed under: News - @ February 20, 2025 1:23 pm