Bitcoin wallet activity drops to lowest level since 2010

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

The weekly active Bitcoin wallet rate in June dropped to the lowest 1.22% and highest 1.32%, a level that has not happened since November 2010, according to statistics from analytics company IntoTheBlock. Previously on May 27, the system also recorded the total number of active wallets being 614,770, 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 cryptocurrency community is also bracing itself for a series of moves from whales. Some accounts holding large amounts of Bitcoin , which are linked to governments, are also selling off their reserves. "The majority of large-scale transactions take place outside the blockchain, making them unrecorded in Bitcoin wallet activity statistics," 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.