Bitcoin’s steep price drop from $69,000 to $33,000 has generated a lot of interest from consumers about its patterns. The most current data indicates the same is true with on-chain wallet holders. Demand for BTC plummeted from high to tepid, within a 12-week timeframe, according to an analysis by Glassnode, an analytics firm.
The Bitcoin network has ca. 275,000 active transactions a day, which is much lower than the 400,000 from November 2021. This reduction in activity by daily entities means that Bitcoin transactions are at the same level as June 2019. The low activity level is even below the peak experienced in December 2017, which was the last cycle in halving. According to Glassnode, this is a sure sign of tepid demand on the part of new users, and far below the highs experienced in bull markets.
Researchers say that regardless of which phase of the cycle we are in, the trend usually is for growth in entity numbers. They put this lack of growth down to the effects of the Bitcoin network unfolding exactly as it had been forecast.
The drop in activity is definitely big because it occurred in such a short timeframe, according to a Cointelegraph report. Even though wallet numbers are rising, most of these contain just 0.01 BTC which is approximately $400. The total number of wallets with these numbers is close to 10 million.
Since the start of 2021, long term holders or wallets with no change in fund levels for 155 days or more, 3 million BTC have been added. This is a sign of long belief in the market and BTC’s value. This is evident with institutional adoption of BTC across the globe.