The crypto market has been experiencing a decline in the number of active addresses for Bitcoin and Ethereum since early 2024. Data from CryptoQuant shows that active addresses for Bitcoin have fallen from 1.17 million to 855,000, while active addresses for Ethereum have decreased from 382,000 to 312,000. This decrease is concerning for bullish investors, as new participants are necessary for market growth. Despite increased interest in spot ETFs, there hasn't been a significant influx of new investors. The approval of spot ETFs was expected to attract more active addresses, but this hasn't materialized. The decline in address activity may indicate that retail investors, who drive market booms, have yet to enter the crypto space. Stagnation in the market is also attributed to external macroeconomic factors, such as the Federal Reserve's ongoing liquidity tightening measures. However, there is hope that the market will improve in the future when the Fed returns to quantitative easing. Without new retail investors, the market's bullish potential may remain weak, even with institutional investors. Changes in monetary policy could potentially revive the crypto market later in the year, as it waits for a more favorable macroeconomic environment.
- Content Editor ( blockchainreporter.net )
- 2024-10-02
Bitcoin and Ethereum Address Activity Declines: BTC Drops from 1.17M to 855K, ETH from 382K to 312K