The activity rate of Bitcoin wallets has dropped to its lowest level since late 2010, while the total number of active wallets has also declined.
According to data from analytics firm IntoTheBlock, the weekly active Bitcoin wallet rate in June ranged from a low of 1.22% to a high of 1.32%, not seen since November 2010. On May 27, the system recorded 614,770 active wallets, the lowest since December 2018.
This decline in wallet activity indicates a drop in Bitcoin transactions, with the market undergoing reorganization and consolidation. Juan Pellicer, a senior researcher at IntoTheBlock, attributes this to a need for more participation from small retail investors.
“This year’s Bitcoin price peaks have been driven by large institutional investors rather than retail participants. The overall economic situation has also had an impact, making small players hesitant to invest heavily in the crypto market as they did before,” he explained.
The crypto community is also bracing for a series of moves from whales. Some large Bitcoin holders, including accounts linked to governments, are selling off reserves. “Most large-scale transactions occur off-chain, so they don’t appear in Bitcoin wallet activity statistics,” Pellicer added.
Meanwhile, crypto traders are becoming more cautious as Bitcoin’s price has fluctuated significantly recently. After nearing $70,000 in mid-June, close to its peak in March, Bitcoin has now dropped to around $54,000.
