The total number of active addresses on the Bitcoin network hit new lows in 2024, reaching the same level as 3 years ago, when the price of BTC was quoted at around $45,000.

A decline in active addresses indicates less overall activity on the Bitcoin network, i.e. fewer transactions are taking place, which may reflect less interest in using the network at this point in the market.

This feeling of disinterest could have a negative influence on the price of BTC, coinciding with indicators of low trading volume.

Less activity on the network generally means less volatility, which can lead to periods of price stability.

Bitcoin has been trading sideways for around 180 days within a price range that varies between $71,000 - $50,000.

For some investors, a drop in active addresses and price can be seen as an opportunity to buy Bitcoin in anticipation of a future rally.

However, if the decline is interpreted by investors as a sign of weakness or loss of relevance in the current macro scenario new supports should be formed increasing disinterest in the asset providing new entry opportunities.

Written by G a a h