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In a recent analysis, CryptoQuant indicated that the total number of active addresses on the Bitcoin network has hit new lows in 2024, reaching the same level as three years ago, when the price of BTC was quoted at around $45,000.

A decrease in active addresses reflects less overall activity on the Bitcoin network, implying that fewer transactions are taking place. This could indicate a lack of interest in using the network at this time.

Such diminishing interest could affect the price of Bitcoin, correlating with evidence of low trading volumes. Less network activity often leads to reduced volatility, resulting in a period of price stability that stems from range trading or consolidation. Bitcoin has traded sideways for about 180 days, with prices ranging from $49,050 to $73,000.

For some investors, a drop in active addresses and price can be interpreted as a buying opportunity; however, perspectives may vary. If the market perceives the decrease as a sign of weakness or lack of relevance in the current macroeconomic environment, new supports might emerge, creating fresh entry points.

Bitcoin Price Action

Bitcoin price action has stagnated, and investor sentiment has been apathetic over the last six months.

According to Glassnode, a noteworthy shift has occurred in the last three months, with increased downward pressure causing the market to experience its most significant fall of the cycle.

Nonetheless, from a larger perspective, Bitcoin’s spot price is trading roughly 22% below its recent ATH of nearly $74,000, indicating a relatively modest fall compared to previous bull market regimes.

Although the average Bitcoin investor is still profitable overall, short-term holders are significantly underwater on their holdings, making them a current source of risk.

At the time of writing, BTC was up 1.55% in the last 24 hours to $57,148, according to CoinMarketCap data.

This article was originally published on U.Today