Recent data indicates a slowdown in Bitcoin adoption, reaching levels not seen since July 2018. Let’s explore the factors contributing to this trend.

Decline in New Bitcoin Addresses

An analysis by IntoTheBlock reveals a significant drop in the creation of new Bitcoin addresses. This metric, known as “New Addresses,” tracks the daily creation of new addresses on the Bitcoin network.

While a high value in this metric usually indicates increased investor participation in the cryptocurrency market, other factors can also influence it, such as existing investors re-entering the market or creating multiple wallets for privacy reasons.

Currently, the low value of this indicator suggests a lack of fresh interest in Bitcoin, potentially signaling a bearish sentiment for the asset.

Chart depicting the decline in the 7-day average of new Bitcoin addresses:

The 7-day average of new Bitcoin addresses has seen a downward trend this year, indicating a decreasing influx of new investors.

With the metric hitting a low of 276,000, the lowest since July 2018, previous downtrends in new addresses have typically coincided with the end of bullish market periods.

However, the recent slowdown may not solely be attributed to declining investor interest but could be influenced by other factors, such as changes in investment preferences.

Implications for Bitcoin Price

Currently, Bitcoin is trading at approximately $66,100, showing a more than 5% increase over the past week.