Bitcoin Activity Hits Lowest Point Since 2010: Will The NExt Three Months Be Any Different?

Bitcoin’s onchain activity has plummeted to its lowest levels since November 2010, with the ratio of active Bitcoin addresses dropping significantly. June saw the weekly active wallet ratio fall to a mere 1.22%, only peaking slightly higher at 1.32% throughout the month.

The total number of active wallets also reached multiyear lows, with only 614,770 active wallets recorded the week of May 27—the lowest since December 2018. This decline suggests a phase of market consolidation, with decreased buying and selling activity among Bitcoin holders.

Juan Pellicer, a senior researcher at IntoTheBlock, explains this drop in wallet activity as a result of weaker retail participation compared to previous cycles. “This year’s run to a new all-time high was driven by institutional capital instead of retail investors,” Pellicer told Cointelegraph. He attributes this to the broader economic situation, which has dampened retail investment in crypto.

Investors are also anticipating increased whale movements, including the Mt. Gox trustee’s plan to start distributing payments to creditors in July. Large holders, including some linked to governments, have been seen selling off Bitcoin, with much of this bearish trading activity occurring offchain and not significantly affecting onchain address activity.

The drop in Bitcoin activity seems counterintuitive given the launch of Runes, a fungible token protocol introduced with the latest halving event in April. Initially, Runes provided a significant revenue boost for miners, but transaction fees and miner reserves have since normalized to pre-halving levels, hitting 14-year lows.

Pellicer notes that while activity on Runes has cooled, this is likely a temporary lull due to the cyclical nature of such assets. Meanwhile, the spotlight in the crypto world has shifted to memecoins and celebrity tokens, which are drawing speculators looking for quick gains.
#VanEck_SOL_ETFS #ETH_ETFs_Approval_Predictions
#BTC #bitcoin $BTC