After the collapse of the crypto market, which brought BTC below $20,000, the number of active Bitcoin addresses dropped dramatically.
Use of Bitcoin addresses declining
Following the cryptocurrency market crashes of recent weeks, which have resulted in declines in the range of 60-70% from the highs of November 2021, the number of active Bitcoin addresses has also fallen. Active addresses are considered to be all those that record cryptocurrency transfers in a month.
According to data from the analysis company IntoTheBlock, active Bitcoin addresses in the last month have fallen by 20%. Data also confirmed by Cryptoquant‘s graphical analysis, which shows that in the last week Bitcoin’s active addresses have fallen below the 800,000 mark. During Bitcoin’s peak period in November, there were more than 1.4 million active addresses.
At the root of this drop is surely the collapse of Bitcoin, which fell below the fateful $20,000 threshold. It is clear that many investors faced with such large falls tend to exit the market. But the drop in active addresses could also indicate that some investors in such a difficult moment tend to consolidate and therefore are no longer active in the markets, waiting for more favourable moments.
The latest data
IntoTheBlock shows how the opening of new addresses is also dropping, which in the last week alone has fallen by 17%.
The total number of Bitcoin addresses would be around 41 million.
Of these, about 240,000 hold more than one million, according to the latest figures.
In January 2021, there were 100,000, while in 2020 only 25,000.
Bitcoin millionaires therefore still represent a small slice of the approximately 47 million millionaires in the world today.