Bitcoin

April

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-addresses-drop-to-5-year-low" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Addresses Drop to 5-Year Low</a><br></p>
<p style="text-align: justify">Recent data from IntoTheBlock has revealed a significant decline in <a href="https://en.bitcoinhaber.net/bitcoin-eyes-83000-target-as-on-chain-activity-surges" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> network activity, with new Bitcoin addresses hitting their lowest point since July 2018. Over a seven-day average, only 276,000 new addresses were created, a steep drop from 625,000 six months prior. This decline occurs despite Bitcoin’s price trading around $67,000 following a 7% gain last week, signaling a decrease in new <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="external">investors</a> entering the crypto market.</p>
<h2 id="why-are-new-addresses-important">Why Are New Addresses Important?</h2>
<p style="text-align: justify">The “New Addresses” metric is crucial as it monitors the daily creation of new Bitcoin wallets. High numbers usually indicate an influx of new investors, although returning users and those creating multiple wallets for privacy reasons also contribute. Generally, a high number of new addresses suggests bullish sentiment for Bitcoin. However, the current low count points to fewer new investors entering the market, despite recent price increases.</p>
<p style="text-align: justify">Other on-chain indicators also show a downward trend. Miners’ revenues, transaction fees, and transaction volumes have decreased, highlighting a broader decline in Bitcoin network activity. Typically, increased network activity signals higher demand and price stability, but the current figures suggest a shift towards derivative speculation over organic usage.</p>
<h2 id="what-impacted-the-network-activity">What Impacted the Network Activity?</h2>
<p style="text-align: justify">The U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) on January 10, 2024, has positioned Bitcoin as a traditional investment vehicle, reducing interest in on-chain transactions. Additionally, high transaction fees linked to the excitement around the Runes protocol further impacted network activity.</p>
<p style="text-align: justify">Moreover, the seven-day moving average of active addresses fell below 700,000 for the first time since March 2020. While fees have stabilized from an average of $31.4 on April 23 to $2.97 on May 18, the number of active addresses remains significantly low. The 30-day active address count, reflecting the unique addresses involved in transactions over a month, dropped to 12.64 million, a level last seen in February 2019. This indicates a reduced demand for transactions on the Bitcoin network.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Monitor the “New Addresses” metric to gauge market sentiment.<br> – Be aware of regulatory changes like ETF approvals that can shift investment behavior.<br> – High transaction fees can deter on-chain activity and affect network health.</p>
<p style="text-align: justify">In conclusion, the sharp decline in the creation of new Bitcoin addresses underscores a shift in market dynamics, with fewer new investors entering the <a href="https://newslinker.co/category/science/space/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">space</a> and existing participants focusing more on derivative markets. This trend could have long-term implications for Bitcoin’s growth and adoption.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-addresses-drop-to-5-year-low" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Addresses Drop to 5-Year Low</a></h5>

Bitcoin Addresses Drop to 5-Year Low

Table of Contents

BH NEWS

Other articles published on May 20, 2024

Ethereum price soars on spot ETF rumor — How are ETH options markets positioned?

Magic Eden Redirects UTXOs to Coinbase

Former Pump.Fun Employee Accused Of $1.9 Million Exploit Says He’s Been Arrested, Charged, And Is...

5th Scape (5SCAPE) Price Prediction 2024, 2025, 2030

Crypto Crackdown: Venezuela Goes Dark On Mining To Ease Grid Overload

OKX Ventures Invest in First Bitcoin Layer 2 Solution Bitlayer

Join our free newsletter for daily crypto updates!