Reduction of Activation Address: It Is Not the End of the Season, but a Wait-and-see Period
Active Address represents the number of wallets activated when Bitcoin is transacted. This metric provides an indirect insight into how many people are actively trading Bitcoin.
In 2017 and 2021, when #Bitcoin❗ ’s price reached its cycle peak, the number of Active Addresses sharply declined. After these peaks, Bitcoin’s price entered a prolonged bear market. The sharp decrease in wallet activity suggests that people stopped engaging in transactions and essentially “locked up” their wallets.
In 2024, the number of Active Addresses has also decreased significantly, reaching levels similar to the beginning of the 2021 bear market. However, unlike in the previous downturn, Bitcoin’s price is currently moving sideways within a large range, showing no clear direction. This behavior differs from the typical end of a bull market, where a sharp decline usually follows. Despite the extended price stagnation, market participants appear to be quietly observing, influenced by factors such as the impact of Bitcoin spot ETFs, the U.S. presidential election, and expectations of interest rate cuts.
It is anticipated that when the number of Active Addresses begins to rebound and increase, Bitcoin’s price will likely follow suit and rise.
