Bitcoin’s price has been dropping lately, and that’s making people nervous. This dip is affecting more than just the price; it’s impacting how many new people are using Bitcoin.
Fewer New Bitcoin Addresses
Experts are noticing a significant drop in the number of new Bitcoin addresses being created. This is a big deal because it means fewer people are buying and using Bitcoin. The monthly average of new addresses is now below the yearly average, showing a real slowdown in activity. This could mean that Bitcoin’s network isn’t as strong as it used to be.
One reason for this could be the recent market volatility. Investors are worried about Bitcoin’s future, especially those who bought recently.
Short-Term Holders Are Selling
Short-term Bitcoin holders (those who bought recently) have been taking big losses. Many are selling their Bitcoin at a loss, which is creating more downward pressure on the price. Some of this selling might be a reaction to recent negative news in the crypto world, like the Bybit hack. However, historically, this kind of panic selling can sometimes signal that the price has hit bottom.
Small Investors Are Pulling Back
Even small investors (those with less than 1 Bitcoin) are becoming less active. They’re not buying as much Bitcoin as they used to, showing a lack of confidence in the market. This suggests that the recent market movements are mainly being driven by larger, long-term investors.
In short, the combination of falling prices, fewer new users, and short-term holders selling off their coins paints a picture of a market struggling to gain momentum. Whether this is a temporary setback or a more significant shift remains to be seen.
