Bitcoin's active addresses, representing the total number of active users on the network, have "declined significantly" since the beginning of 2024. This pattern has historically formed after Bitcoin's price peaked in the 2017 and 2021 bull cycles. Avocado onchain, a CryptoQuant contributor, pointed out that if active addresses bounce back, Bitcoin's price will likely follow.

The analyst noted that Bitcoin's price has been "moving sideways within a large range, showing no clear direction." This signals a shift in Bitcoin holders' mindset, with more choosing to hold long-term. "The sharp decrease in wallet activity suggests that people stopped engaging in transactions and essentially "locked up" their wallets," CryptoQuant stated.

The decline in active addresses is attributed to a large amount of the market being "gobbled up" by institutional cash. This crucial Bitcoin activity metric is now reaching levels usually only observed after the asset's price has already peaked, adding to the ongoing uncertainty around Bitcoin's future price movements.

Source: https://cointelegraph.com/news/bitcoin-price-no-clear-direction-active-address-metric-decline-cryptoquant

The information provided in this article is for informational and educational purposes only, based on news and sources gathered from the internet. This content should not be considered as investment advice, financial guidance, or a suggestion to buy or sell any digital assets. Before making any financial decisions, we recommend consulting with a professional financial advisor and conducting your own research. The author and the blog are not responsible for any losses or damages that may arise from using this content.