Bitcoin Daily Active Addresses Spike Despite Price Stagnation

• Bitcoin’s daily active addresses soared to over 700,000 recently.
• The price, however, has not seen significant shifts in either direction.
• Bitcoin’s price trends have been sluggish, reflecting a similar pattern in its address metrics.

Find out the latest trends in Bitcoin’s address activity and what it means for its price movement.

Bitcoin Experiences Momentary Surge in Active Addresses

For the past few months, the trend in Bitcoin’s daily active addresses has been generally downward. However, there was a brief break from this trend recently, marking a significant event in Bitcoin network activity.

According to COINOTAG’s analysis, since around March, the number of daily active addresses has been on a steady decline. On March 5th, there were over 1 million daily active addresses, which then fell to around 900,000, and further down to the 600,000 range.

At the end of the past week, a notable spike occurred when the number of active addresses surged to over 765,000 on June 8th. However, this increase was short-lived, as the number quickly dropped back to around 619,000 by June 9th. Currently, the daily active addresses stand at around 110,000.

Decline in New Bitcoin Wallets

An analysis of data from Glassnode shows a similar trend in new Bitcoin addresses. This decline in new addresses began even earlier, in January 2024. At the start of the year, the number of new daily addresses was above 500,000, but by the end of May, it had fallen to below 300,000.

Currently, the number of new addresses is attempting to recover but has only managed to rise to about 254,000. The clear correlation between the drop in daily active addresses and new addresses suggests a significant hindrance to momentum in Bitcoin activity.

This stagnation in the network activity has mirrored in Bitcoin’s price, which has seen little to no movement over the same period.

Minimal Price Activity

COINOTAG’s daily timeframe chart analysis shows that Bitcoin’s price movement has remained relatively flat. Bitcoin saw a slight increase of 0.43% at the end of trading on June 9th, maintaining a value of approximately $69,683.

Currently, Bitcoin’s price has slipped slightly to around $69,600, reflecting minimal action. This lack of significant price movement is consistent with the drop in active and new addresses observed recently.

Conclusion

In summary, Bitcoin’s network activity, indicated by the number of daily active and new addresses, has shown a downward trend over the past few months, with only brief interruptions. This decline has directly corresponded with the relative stagnation in Bitcoin’s price movements. The cryptocurrency sphere should closely monitor these indicators for any future signs of significant shifts in trend.