Why Active Addresses Has Collapsed
Bitcoin Active Addresses have fallen off a cliff, which is historically a signal that the bear has arrived for real. However, we may need to dig further to uncover what exactly is going on here.
In recent weeks, several folks have asked a similar question, or rightly raised concerns over the apparent collapse in the Bitcoin Active Address metric. There is no doubt about it, this metric looks horrific, and has collapsed down to levels last seen at the 2018 bear market lows.
Now such a drop in Active Addresses should rightly set off our analyst alarm bells, as it has historically been a very bad sign. I have previously viewed similar drawdowns in onchain activity like this as a sign the bear is not only here…but we’re deep into it, and the cycle is usually completely over by that point.
So with Active Addresses falling off a cliff like this…should we really be bear market concerned?
Let’s dig into the data to find out.
