Bitcoin network activity has dropped to its lowest level since 2010
According to data from IntoTheBlock, the ratio of active Bitcoin addresses has fallen to its lowest level since November 2010.
In June, the weekly active portfolio ratio fell to a low of 1.22% and a high of 1.32%.
Additionally, the total number of active wallets has dropped to levels not seen since 2018, with 614,770 active wallets recorded this week.
Source: IntoTheBlock
A decreasing ratio of active addresses suggests reduced buying and selling activity among Bitcoin holders, indicating a phase of market consolidation.
READ MORE:
Bitcoin Price Crash Warning From Crypto ExpertJuan Pellitzer, senior analyst at IntoTheBlock, explained the drop in activity on BTC portfolios with less retail participation than in previous cycles.
He stated:
This year's march to a new all-time high was fueled by institutional capital, not retail investors. The broader economic situation may have influenced retail investors to make fewer investments in cryptocurrencies than in the past.
According to him, much of the bearish trading activity takes place off-exchange, which does not significantly affect the on-chain activity statistics of addresses.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wintermute’s Aggressive Liquidations Trigger Panic: 5 Cryptos Worth Risking Before Buyers Return to the Market
Once the Federal Reserve starts the rate hike cycle, is "three consecutive hikes" a reasonable expectation?
BMO expects consecutive rate hikes in October and December, with a total of three increases potentially wiping out all rate cut gains for 2025. Vanguard believes "three consecutive hikes" is a reasonable starting point, but the actual number could be as high as six. There are historical exceptions: in 1997, the Federal Reserve raised rates only once and took no further action for the following 18 months. Meanwhile, trillion-dollar debt financing by AI giants, private credit exposure in the insurance industry, and the 10-year U.S. Treasury yield approaching 5% are the most dangerous pressure points in this rate hike cycle.
Goldman Sachs Also Changes Its Tune: The Fed Will Raise Interest Rates Next Week!
Goldman Sachs has shifted from predicting a rate hold to betting on a 25 basis point hike next week, stating that this change is not due to particularly bad inflation data—the August CPI was not perfect, but it wasn’t alarming either. The real key is that hawkish comments from Waller have already shaped market expectations: "If the inflation data isn’t perfect, there will be a rate hike." If the Federal Reserve backs down now, its credibility will suffer a serious blow and long-term interest rates could react sharply and immediately.
Crypto prices
More
