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▲ Bitcoin (BTC)/AI Generated Image
The number of active addresses on the Bitcoin (BTC) network plummeted by 39.80% in just two weeks, clearly signaling the departure of short-term investors, yet long-term holders are showing unwavering conviction.
According to crypto media outlet U.Today on May 26 (local time), Bitcoin showed a bearish trend, repeatedly testing previous lows amid the ongoing sideways movement of the overall cryptocurrency market. Data released by crypto analyst Ali Martinez shows that the number of active addresses on the Bitcoin network recently fell below 500,000.
Over the past two weeks, the number of active wallet addresses holding Bitcoin decreased from 821,000 to 494,000, a decline of 39.80%. U.Today reported that this sharp drop occurred amid a broader market consolidation, with Bitcoin continuing its sideways trend with weakened upward momentum.
The sharp decline in active addresses is interpreted as a sign that short-term holders and speculative traders are exiting the market. As price volatility and reduced network activity occurred simultaneously, it is analyzed that short-term traders are increasingly closing their positions.
However, Martinez suggested that while reduced network activity is typically considered a bearish signal, this time it could have a positive meaning. This is because a decrease in activity during a consolidation phase can be interpreted as long-term investors holding onto their assets while short-term holders and speculative forces lose interest.
U.Today reported that a larger portion of the circulating supply is being held by long-term, high-conviction holders. In the past, similar periods of reduced network activity have preceded major price breakouts after upward momentum returned to the market. While decreased trading activity appears bearish in the short term, it could be a sign of reduced selling pressure, the analysis concluded.
*Disclaimer: This article is for informational purposes only and should not be considered investment advice. We are not responsible for any investment losses based on this content. This content should be interpreted for informational purposes only.*
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