As crypto struggles to increase in value, new information indicates a reduction in the number of active Bitcoin addresses associated with the blockchain. The moving average over seven days of addresses associated with Bitcoin fell to just over 758,000, which is the lowest number since April of 2020.
Chief investment officer of ByteTree Asset Management, Charlie Morris, said, “The decline in active user participation is a sign of weak demand. The hype cycle is over for now, and the market is unable to attract new entrants at the same pace.”
Network usage impacts the demand and value of the cryptocurrency. Chief economist at Chainanalysis, Philip Gradwell, said, “When there’s greater usage, there’s more demand for cryptocurrency, and that drives the price up.”