Bitcoin Active Addresses At Their Lowest Since February Of 2019

Blockchain data shows that activity on the Bitcoin BTC/USD network saw a significant reduction since mid-April.
What Happened: According to blockchain analytics service Glassnode, the number of active addresses on the Bitcoin network fell to 505,304 at the end of June (the most recent data available) — a level not seen since Feb 10, 2019, when the network had only 495,935 active addresses.

In this case, active addresses mean Bitcoin wallets that were active in the network either as a sender or receiver over the last month.

As expected, the number of active addresses started sharply falling right after Bitcoin fell from its mid-April all-time high, exceeding $60,000.

Activity on the network fell much more sharply than the price – by over 99.96% – similarly to what happened only in 2017.

Number of Active Addresses on the Bitcoin Network: Jan 1, 2010 - July 28, 2021 | Source: Glassnode

This observation follows Bitcoin becoming possibly the most undervalued, according to the stock-to-flow model, it has ever been since its launch.

According to a recent analysis, the coin is now worth just under one-quarter of what the model estimates its fair value to be.

Price Action: According to CoinMarketCap data, as of press time, Bitcoin is trading at $39,648, going slightly down by 1.11%.

This price is 36.75% lower than its mid-April all-time high of $63,503, but also 34.74% higher than July 20th's low of $29,807.

Read also: Ethereum Outperformed Bitcoin And Every Benchmark Asset In The First Half Of 2021: Coinbase