Bitcoin Active Addresses Plummet Amid Crypto Market Slowdown

As the crypto market has been down for a while, the effect is starting to show on Bitcoin’s key metrics. The number of active addresses on the network has reached abysmal levels, which could have serious implications on Bitcoin and crypto at large.

Data from CryptoQuant shows that the active address count has fallen to the lowest level in the last year. According to CryptoQuant analysts, this means that market movements in recent times have been driven by only a few participants, an indication that the market has entered a “SlowDown Phase.”

Bitcoin’s Poor Performance Explained

Bitcoin’s performance has been unimpressive recently, as it has failed to recover from a long bearish trend that seems to be persisting. Since its colossal crash in October, the price has not made any tangible recovery despite making some recovery progress once in a while.

For example, the coin lost the $90,000 price level this week, which analysts say has been a critical determinant of its next direction. After losing the support, analysts now see the possibility of the price plunging to levels last seen in months, and CyptoQuant’s data seems to explain why the coin has been this way.

Data from Coinmarketcap also supports this narrative. A look at Bitcoin’s volume shows a decline of over 21% in the last 24 hours. With such a decline, the price momentum is also likely to be weak, as shown by the inability of the coin to reach any reasonable recovery despite indications that a reversal is due.

Several analysts have predicted using different indicators that Bitcoin’s reversal and by extension the crypto market is due, but these predictions have not manifested in pushing the price towards a breakout. Unless the poor participation ends, chances are this weak market momentum will persist.

Altcoins Affected by Bitcoin’s Weakness

Bitcoin has historically dictated the tone for the rest of the crypto market, determining the direction of momentum. As a result, the low participation on its network seems to have affected altcoins as well, with most of them performing worse than Bitcoin itself.

Although analysts recently highlighted the Russell 2000 as an index that just reached a new all-time high which could trigger an altcoin season, Bitcoin’s weakness may still be a major setback in realizing such a rally in the short term.

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