The decline in active addresses and the drop in the price of Bitcoin

Since reaching its all-time high in March, Bitcoin's price has struggled to regain momentum, leading to a decline in trading activity. This lateralization, coupled with occasional price crashes, has discouraged many from engaging in Bitcoin transactions.

The data of the past

In March, the number of daily active addresses on the Bitcoin blockchain peaked above one million, but this figure has steadily declined since then. While there has been a slight rebound in recent months, the average number of daily active addresses remains below its early 2024 levels.

The holding of transactions

Despite the decrease in active addresses, the number of daily transactions recorded on the Bitcoin blockchain has actually increased. This can be attributed in part to the introduction of new features like Inscriptions, Ordinals, and Runes.

Analysis of today’s Bitcoin (BTC) price

Bitcoin's price has been trading within a narrow range between $56,000 and $70,000 since the August 5th crash. While there is a possibility of further declines, the long-term outlook remains positive, particularly after the upcoming American elections.

Conclusion

While Bitcoin has experienced a decline in trading activity and price fluctuations since its March peak, the underlying fundamentals remain strong. The increase in transactions and the potential for a price surge following the elections suggest that Bitcoin's long-term prospects remain positive.