Bitcoin’s activity has significantly dropped over the last month. Let’s see what history tells us about what might happen next.
Less Active Bitcoin: A Familiar Pattern?
A recent analysis shows a big decrease in active Bitcoin supply. This means a smaller percentage of Bitcoin has been used in transactions over the past 180 days compared to the previous month. Specifically, 17% less Bitcoin is active now.
This isn’t entirely unexpected. During previous bull runs (like late last year and Q1 2024), a lot more Bitcoin became active, as more people jumped in. However, even when Bitcoin briefly hit $100,000 earlier this year, we didn’t see a similar surge in activity. Now, with the price consolidating around that level, activity is way down.
History Repeating Itself?
Interestingly, a similar drop in active Bitcoin supply happened last September. What followed? A sharp price increase for Bitcoin! A similar pattern also preceded a bull market in late 2021. However, the drop in active supply wasn’t as dramatic then.
So, will history repeat itself? It’s anyone’s guess. This current cooldown could just be a temporary lull before another price surge. Or, it could signal a longer period of lower activity and price stagnation.
Current Bitcoin Price
Bitcoin briefly dipped to around $105,000 yesterday, but it quickly recovered, trading around $107,200. It seems to be stuck in a sideways trend for now.
