July 22, 2024
Bitcoin Price at $61,547 as Active Wallets Hit Lowest Since 2010
Bitcoin price today

Bitcoin Price at $61,547 as Active Wallets Hit Lowest Since 2010

Friday, June 28, 2024: Bitcoin Price Today is $61547. The ratio of active Bitcoin addresses has plunged to its lowest level since November 2010, per on-chain data from IntoTheBlock. In June, the weekly active wallets ratio saw a significant drop to a low of 1.22%, peaking only slightly higher at 1.32%. This peak ratio was last observed in November 2010, indicating a substantial decrease in wallet activity over the years.

Source: TradingView

Multiyear Lows in Active Wallets

Adding to the concerns, the total number of active wallets has also plummeted to multiyear lows. Specifically, during the week of May 27, there were only 614,770 active wallets, marking the lowest count since December 2018. This decline in the active address ratio points to a reduction in buying and selling activities among Bitcoin holders, suggesting a phase of market consolidation.

The number of active addresses fall to multiyear lows. Source: IntoTheBlock

Juan Pellicer, a senior researcher at IntoTheBlock, attributes the declining wallet activity to a weaker participation rate among retail investors than in previous cycles. “This year’s run to a new all-time high was driven by institutional capital instead of retail investors,” Pellicer said. He added, “The wider economic situation could have played a role in retail not making as many crypto investments as they’ve done in the past.”

Anticipation of Increased Whale Movements

As the drop in activity rate continues, investors are preparing for a potential rise in whale movements. Notably, the Mt. Gox trustee is set to begin distributing payments to creditors in July. Additionally, some larger holders, including those associated with governments, have been observed engaging in selling activities. Pellicer explains, “Due to this concentration, much of the bearish trading activity is being performed off-chain, which doesn’t significantly impact on-chain address activity statistics.”

Interestingly, the decline in activity comes despite the launch of Runes, a fungible token protocol introduced to the Bitcoin ecosystem alongside the latest halving event in April. Runes were anticipated to create an alternative revenue stream for miners, which it successfully did on the first day, with miners earning record-high trading fees on the halving day. However, this has not been enough to counterbalance the overall drop in wallet activity.

In summary, the Bitcoin market is experiencing a significant decrease in active wallets ratios and total active wallets, with institutional capital driving recent market movements rather than retail investors. The economic situation and anticipation of whale movements, along with the introduction of new protocols like Runes, all contribute to the current state of the Bitcoin ecosystem.

Image by MichaelWuensch from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Bitcoin Hits $42,516 Amid Stablecoin Surge and ETF Conversions

Cheryl  Lee

Bitcoin at $69,908, With Anticipation for Ethereum ETF Approval

Anna Garcia

Bitcoin Price Today is $59,066, Mirrors Post US Spot Bitcoin ETFs

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.