The monthly number of active Bitcoin addresses has reduced by 2 million years after another, besides massive price correction, said a report by TradingPlatforms.com.
According to the report, the value of the world’s largest cryptocurrency reduced by nearly 60% year after year, amid the recent Bitcoin crash.
The report noted that the number of active addresses meant that investors referred to as “market tourists” were withdrawing from Bitcoin; leaving only the long-term ones who have more control in the digital currency market.
“Last week, the combined value of all BTC coins slipped to $390.5 billion way down from $1.16 trillion in November last year,” stated the report.
According to data from another cryptocurrency analytics platform, Glassnode, new investors are not exploring the Bitcoin market, hence the drop in the number of active addresses since November 2021.
“In October last year, the monthly number of active Bitcoin addresses stood at 18.3 million. Over the next four months, this figure dropped by almost 15% reaching 15.6 million in February. After a short recovery in March and May, the number of active addresses continued falling and slumped to 15.4 million in July, the lowest number in the last year. Although the number of active addresses has risen to 16.3 million since then, this still represents an 11% drop year-over-year,” read a statement in the report.
Data from the report indicated that the total number of non-zero addresses increased by 11%, rising from 38.3 million in October 2021 to 42.7 million last month.
In October, the monthly number of new addresses stood at 12.6 million, a reduction from 13.5 million, same month in 2021.
“However, Bitcoin’s trading volume significantly increased in October, despite the drop in September,” stated the report.
In addition, data from a cryptocurrency analysis app, CoinMarketCap placed Bitcoin as the second most-traded crypto in October, with a monthly trading volume of $1.59 trillion or 35% more than in September.
In addition, CoinMarketCap noted that” Bitcoin’s trading volume was three times that of Ethereum and $18bn less than Tether’s, the most-traded crypto last month.”
The 7.3% price increase in October had driven Bitcoin’s market cap to $398.9 billion, almost a $30 billion jump in 30-days, still deep below values seen last year.