According to data from IntoTheBlock, the proportion of active Bitcoin addresses has dropped to its lowest level since October 2010. In February, the ratio of weekly active portfolio ranged from a low of 1.32% to a high of 1.76%. Additionally, the total number of active wallets has reached its lowest level since 2018, with 614,770 active wallets this week. The decrease in the proportion of active addresses indicates a decrease in buying and selling activity among Bitcoin holders, suggesting that the market is in a consolidation phase.
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Cryptocurrency experts issue warning of Bitcoin price collapse
Juan Pellitzer, senior analyst at IntoTheBlock, explained that compared to previous cycles, there is less retail participation in the investment portfolios. He stated, “The driving force behind this year’s record highs is institutional capital, not retail. The broader economic situation may lead retail investors to reduce their investments in cryptocurrencies.” According to him, most bearish trading activities occur over-the-counter, which does not have a significant impact on on-chain activity statistics.
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