Bitcoin Active Addresses Decline Tied to ETF Introduction

The decline in active Bitcoin addresses since 2021 may be linked to the ongoing bear market that began in that year. Unlike typical bullish cycles, this one shows no surge in network activity; in fact, the number of active addresses has consistently decreased from its 2021 peak of 1.15 million to 740,000, reflecting a 50% reduction. A significant drop occurred in early 2024, coinciding with the introduction of spot Bitcoin ETFs. This suggests many investors might prefer ETF access over holding BTC directly, bypassing transaction management and security risks. Consequently, the advent of ETFs potentially altered investment behaviors, severely impacting blockchain activity metrics.