- Daily active addresses in Bitcoin trading slipped 12% in one month
- Traders pared back their bets and consolidated amid uncertainty
- Bitcoin prices slide to $64,000 from a monthly high near $70,000
Daily Active Addresses Drop
Daily active Bitcoin addresses, including senders and receivers, dropped 12% in the past month as markets sought to consolidate. The addresses operating on the Bitcoin network slipped to 613,000 from 700,000 — a decline that sparked discussions over whether turbulent times are coming.
Usually, markets tend to consolidate and pull back from trading when there’s uncertainty, and more or less, a gloomy outlook for traders. In this case, the price of Bitcoin gained as active addresses dropped, indicating a divergence between price and users.
The leading coin added roughly 13% in May, shooting closer to the $70,000 mark. In June, however, crypto traders and investors scaled back their bets on the risky asset, with Bitcoin prices floating sideways to the downside.
What Does the Drop Mean?
When active addresses drop, this may mean that traders are not looking to expose their assets to the market. In other words, they’re not showing any risk appetite or desire to trade. Instead, they prefer to hold the tokens in safekeeping mode stacked somewhere in a wallet.
And vice versa — when we see that active addresses increase in count, this indicates that traders are out and about, bargain-hunting their way to new opportunities.
