Bitcoin active addresses are declining due to a large amount of the market being “gobbled up” by institutional cash, says one analyst.
A crucial Bitcoin activity metric is now reaching levels usually only observed after the asset’s price has already peaked, adding to the ongoing uncertainty around Bitcoin's future price movements.
The number of Bitcoin (BTC) active addresses — which represents the total number of active users on the network — has “declined significantly” since the beginning of 2024, a pattern that has historically formed after Bitcoin’s price peaked in the 2017 and 2021 bull cycles.
Avocado onchain says if active addresses do bounce back, Bitcoin’s price will likely follow too. Source: CryptoQuant
