Amid the market plunge, the BTC network is struggling to retain existing addresses.
On Wednesday, Bitcoin dipped below $20,000.
In November 2021, the total number of daily active Bitcoin addresses stood at over 1 million. According to the weekly on-chain analysis report published by Glassnode, the number now stands at around 870,000 per day, which is down by almost 13% in the last seven months.
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During the mentioned period, Bitcoin’s price has plunged by more than 70%. Amid the latest crypto market correction and a sharp drop in the BTC network activity, the total number of BTC addresses in a loss reached an all-time high of 18.96 million on 5 July 2022.
“BTC address activity has declined by 13% from over 1M/day in November, to just 870k/day today. This suggests little growth in new users, and even a struggle to retain existing ones. On-chain activity remains severely muted, and convincingly in the bear market territory. Almost all of the marginal buyers and sellers appear to have finally capitulated and purged from the network over the last 12 months. There are few reinforcements coming into the Bitcoin demand side, and thus prices are correcting until these HODLers can set the floor,” Glassnode’s report explained.
Last week, Finance Magnates highlighted a sharp increase in old BTC supply as Bitcoin addresses that were last active more than 10 years ago reached a record high of 2.46 million.
Bitcoin Exchange Flows
While the overall BTC exchange balance recently touched its lowest level in approximately 48 months, whales moved their Bitcoin assets to crypto exchanges during the last month to take advantage of the bearish opportunities in the market.
“Exchange reserves continue to see large-scale net withdrawals, with aggregate balances declining to levels last seen since July 2018. Overall balance on Exchanges has seen an aggregate outflow of -750k BTC since March 2020. The last three months alone have seen some 142.5k BTC in outflows alone, a remarkable 18.8% of the total,” the report added.
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