Bitcoin Wallet Activity Falls to Lowest Level Since 2010

The percentage of active Bitcoin wallets has dropped to its lowest level since late 2010, while the total number of wallets has also plummeted.

The weekly active Bitcoin wallet rate in June fell to a low of 1.22% and a high of 1.32%, levels not seen since November 2010, according to statistics from analytics firm IntoTheBlock. Previously on May 27, the system also recorded a total of 614,770 active wallets, the lowest since December 2018.

The above indicator shows that Bitcoin transactions are declining, the market is going through a period of reorganization and consolidation. Juan Pellicer, senior researcher at IntoTheBlock, assessed the reason as the lack of participation of retail user accounts.

Bitcoin's iconic coin. Photo: Reuters

"This year's Bitcoin rally has been driven by large, institutional investors, rather than retail players. The overall economic situation has also had an impact, making small players less willing to put as much money into the cryptocurrency market as before," he said.

The crypto community is also bracing for a flurry of whale activity. Some large Bitcoin holdings , which are tied to governments, are also selling off their reserves. “Most large-scale transactions occur off the blockchain, leaving Bitcoin wallet activity unrecorded,” Pellicer added.

Meanwhile, cryptocurrency players have also been more cautious as Bitcoin's price has been on a roller coaster ride in June. After reaching nearly $70,000 in mid-month, approaching its peak in March, the coin has now dropped to around $60,000.