The number of transactions on the Bitcoin network has dropped to its lowest level in three years, with a 30% drop in the last six months. This shows that people are losing interest in the cryptocurrency market.
CryptoQuant, an on-chain analytics tool, said on September 4 that Bitcoin’s stable price has caused fewer daily transactions. Bitcoin addresses that are used every day have dropped from 1.2 million at the middle of March to 838,000 now, according to data.
Bitcoin Addresses Hit Low
As of late August, there were only 744,000 registered addresses, which is the lowest number since 2021. Gaah, a contributor to CryptoQuant, said that the present number is similar to what it was when Bitcoin was worth about $45,000.
“A decline in active addresses indicates less overall activity on the Bitcoin network, i.e. fewer transactions are taking place, which may reflect less interest in using the network at this point in the market.”
BTC price has been stuck in a narrow band for a long time, which has made many investors very unhappy. The Puell Multiple is also flat. This is a key measure that compares the value of BTC mined every day to its 365-day moving average.
Analysts at CryptoQuant say that this drop in activity could mean a long-term buying chance for some buyers. They see the current market lull as a chance to buy more BTC before a possible future rally.
“However, if the decline is interpreted by investors as a sign of weakness or loss of relevance in the current macro scenario new supports should be formed increasing disinterest in the asset providing new entry opportunities.”
This is also agreed upon by other experts. Checkmate, who made Checkonchain, said that the market was in a state of “chopsolidation,” which means that prices are moving in unpredictable, narrow ways. He said that recent price changes are getting major and lasting longer, but Bitcoin hasn’t had the kind of drop that was common during previous bull markets yet.
“Screams to me that this price range is becoming ‘unstable’, and the market is ready to move somewhere else.”
Even though the price of Bitcoin is going down, experts are looking for signs of a breakout from this “unstable” range. This would mean that Bitcoin’s price could be about to change direction.
