On April 15, the number of active Bitcoin addresses was at an all-time high. According to data sourced from blockchain analytics firm – Glassnode, the number of active Bitcoin addresses recently witnessed a 47% fall to 716,000 addresses.
The number of active Bitcoin addresses is an indicator of the demand for on-chain transactions. The number of addresses falling is also indicative of a bearish bitcoin market.
Previously, in December 2017, a similar fall in the number of addresses was witnessed. At that time, too, the price of bitcoins fell from a high of $19,587 to below $6900.
Glassnode’s report highlights that the on-chain demand for bitcoins has slowed significantly. Several other on-chain metrics too are mirroring the trend.
Bitcoin – Bearish Market
The bearish bitcoin trend is despite the good response for the bitcoin 2021 Miami conference. More than 12,000 attendees have confirmed attendance at the conference meant to show support for bitcoins and crypto.
Several prominent names such as Twitter’s Jack Dorsey endorsed digital assets and spoke of their potential to impact the global financial system.
At the conference, the President of El Salvador informed those present that he had sent a bill to his country’s congress proposing to make bitcoin legal tender.
Despite the support, the price of bitcoins hovered between $34,000 and $39,000 and failed to reach even the $40,000 resistance level.
The current news from Glassnode of the fall in the number of active addresses has accentuated the bearish bitcoin trend.
Possibly, Elon Musk’s change of heart on bitcoins, expressed on Twitter, may also have added to the bearish sentiment. Elon Musk’s tweet attracted the anger of the ‘hacktivist’ group who derided Musk for always undermining cryptocurrencies. The group alleged that Musk’s tweets on bitcoins were driven by narcissism and saw it as a means of drawing attention to himself.