CryptoQuant analyst Gaah notes that the number of active addresses on the Bitcoin blockchain has dropped to a new low throughout 2024, hitting a similar high to that seen in 2021 when Bitcoin was around $45,000.
According to CryptoQuant, the number of daily active addresses on the Bitcoin network was around 838,302 as of September 4, with a recent low in late August of just 744,000.
In comparison, the number of daily active addresses on the Bitcoin network was nearly 1.2 million at its peak in mid-March 2024 when its price hit an all-time high of $73,800.
The number of daily active addresses has now hit the same level since 2021. Source: Gaah/CryptoQuant
Also read: Bitcoin Price Could Drop to $40,000 Because of This!
The decline in the number of active addresses indicates reduced activity on the Bitcoin network, indicating fewer transactions are taking place. This could reflect a lack of interest in the Bitcoin network at this time.
Additionally, CryptoQuant analysts note that the lack of interest in Bitcoin could potentially affect the price of the world’s largest crypto asset, as it often correlates with low trading volume.
Less network activity tends to result in lower volatility, which can lead to price stability through limited price movements.
Bitcoin itself has been trading in a relatively stable price range for about 180 days, with prices hovering between $49,050 and $73,000.
The upside is that for some investors, the decline in active addresses and price could be seen as an opportunity to accumulate Bitcoin, although this varies. If the market sees the decline as a sign of weakness or lack of relevance in the current macroeconomic context, new price support could emerge and create a fresh entry point for investors.
