According to data from IntoTheBlock, the proportion of active Bitcoin addresses has dropped to the lowest level since October 2010. In February, the ratio of active portfolio decreased to a low of 1.32% and a high of 2.6%. Additionally, the total number of active wallets has reached the lowest level since 2018, with 614,770 active wallets this week.
(source: IntoTheBlock)
The decline in the proportion of active addresses indicates a decrease in buying and selling activities among Bitcoin holders, suggesting that the market is in a consolidation phase.
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Cryptocurrency experts issue warning of Bitcoin price collapse
Juan Pellitzer, a senior analyst at IntoTheBlock, explained that compared to previous cycles, there is less retail participation in the investment portfolio. He stated that the driving force behind the historical high this year is institutional capital, rather than retail investors. The broader economic situation may affect retail investors’ reduced investment in cryptocurrencies compared to the past.
According to his introduction, most bearish trading activities occur off-chain, which does not have a significant impact on the on-chain activity statistics of addresses.
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