Bitcoin Active Addresses Plummet to 2018 Levels Amid Prolonged Bear Market

Bitcoin's active addresses have plummeted to levels seen during the 2018/2019 bear market. According to data from CryptoQuant, analyzed by Finbold on August 10, the number of unique active addresses (SMA 30) was at around 643,507 on August 9. This represents a 78,248 account slide and a 10.84% drop in network activity compared to October 6 when Bitcoin's price traded at $124,709.

The recent drop in active addresses coincides with a prolonged bear market that has lasted over 10 months. In July 2018, the number of active addresses was at 570,710, and by January 2019, it had dropped to 605,433. However, despite the current decline, Bitcoin's active address SMA (30) has risen to its highest level since May 29, signaling a renewed wave of adoption.

Despite the bear market, some analysts believe that the recent spike in active addresses could be a sign of growing bullish sentiment fueled by institutional purchases. If this trend continues, it may strengthen the bull momentum similar to the post-2018/2019 bottoming which coincided with a new all-time high.

The Bitcoin price has plummeted by over 25% year-to-date (YTD), trading at $64,960 at press time. Its trading volume has increased by 23% on the day, reaching $15.4 billion.