Bitcoin is showing an unusual pattern this cycle. Even though the price has been rising, the number of active Bitcoin addresses has been falling, and this has been happening since around April 2021.
In past cycles, it was simple. When prices went up, more people used the network and active addresses increased. When the market turned bearish, activity dropped. This time, that link has broken.
Back in April 2021, Bitcoin had about 1.15 million active addresses. Today, that number is closer to 680,000. That’s almost a 50% drop, even though BTC is trading much higher than its bear-market lows.
There isn’t one clear reason, but a few trends stand out. Many holders seem to be holding long term and moving coins less often. At the same time, more people are getting Bitcoin exposure through ETFs, custodians, and centralized platforms, which reduces on-chain activity.
This gap between price and on-chain usage shows that Bitcoin’s market structure is changing. Ownership and usage are no longer fully visible on the blockchain, and older on-chain metrics may not explain the market as clearly as before.
Lower active addresses don’t automatically mean Bitcoin is weaker, but they do show that this cycle is different. Watching how these new dynamics evolve may matter just as much as watching the price.
