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The number of active Bitcoin addresses fell about 47% from its peak on April 15 to a low of 716,000 on Sunday, according to data from Glassnode. The last time bitcoin addresses sank so dramatically was during the bear market of 2017. The drop came despite bullish news from El Salvador and the 2021 Bitcoin conference in Miami. Sign up for our daily newsletter, 10 things before the opening bell here.
The number of active bitcoin addresses fell 47% from its April 15 peak of 1.36 million to around 716,000 on Sunday, according to data from blockchain analytics firm Glassnode.
The number of active bitcoin addresses is a sign of the market demand for on-chain transactions, value settlement, and the urgency of inclusion in an upcoming block on the blockchain. A declining number of active bitcoin addresses usually coincides with bear markets in space.
In 2017, when the price of bitcoin fell from a high of above $ 19,587 per coin on December 16 to less than $ 6,900 on February 5, 2018, the number of active addresses also fell from a high of 1.284. million on December 14, 2017 to just 528,000 in February. 25, 2018.
Glassnode
According to Glassnode’s Weekly Channel Report, “this week, in particular, demand growth on the channel has slowed significantly, with a number of on-line metrics showing significant declines.”
The bearish news for bitcoin comes after Bitcoin Magazine sold the 2021 Bitcoin conference in Miami over the weekend. More than 12,000 attendees descended on Miami to support the development of bitcoin and cryptocurrency.
Speakers like Michael Saylor of MicroStrategy and Jack Dorsey of Twitter spoke about digital assets and their potential to change the global financial system in front of thousands of enthusiastic fans.
The conference also hosted an announcement from Salvadoran President Nayib Bukele, who told the crypto community that he had sent a bill to Salvadoran congress that could make bitcoin legal tender in the country.
Despite the bullish news, the price of bitcoin has traded between $ 34,000 and $ 39,000 over the past week, struggling to recover the key resistance level of $ 40,000.
Now, Glassnode’s data suggesting a sustained decline in active bitcoin addresses from the recent bitcoin spike is adding to the bearish tone surrounding the cryptocurrency.
Elon Musk’s apparent reversal of his bitcoin stance may also have hurt the outlook for bitcoin. Musk signaled a potential break with bitcoin when he posted a heartbroken emoji on Twitter last week.
Tesla CEO’s recent comments on bitcoin angered “hacktivist” group Anonymous on Friday. The group posted a video targeting Musk for his “constant trolling” of cryptocurrencies.
“Over the past few years you have enjoyed one of the most favorable reputations in the billionaire class because you have tapped into the desire many of us have to live in a world with electric cars and the space exploration, ”the group said. “Recently people are starting to see you as just another narcissistic rich dude who is in desperate need of attention.”
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