Bitcoin (BTC) Active Address Momentum Shows a Sustained Decline Through 2024

This metric, compares the monthly average of new addresses against the yearly average to underline relative shifts in dominant sentiment and help

This metric compares the monthly average of new addresses (shown in red) to the yearly average (shown in blue). It helps us visualize relative shifts in dominant sentiment and identify when the tides are turning for network activity.

Monthly average > Yearly average usually indicates an expansion in on-chain activity, which is typical of improving network fundamentals and growing network utilization.

Monthly average

Bitcoin's new address momentum shows a sustained decline throughout 2024, particularly in the months following the April halving event. The 30-day simple moving average (SMA) of new addresses has fallen below the 365-day SMA, marking a contraction in network activity.

Historically, similar trends were observed in 2018 and 2021, following Bitcoin's major price peaks. During those periods, new addresses also fell, aligning with broader market cooldowns.

Glassnode data highlights that the monthly average of new addresses during 2024 has remained below the yearly average, pointing to declining user engagement. This trend echoes the downturn seen in mid-2018 when Bitcoin's price corrected after its 2017 bull run.

Despite short-term price rallies, network activity has not rebounded in line with previous cycles. The contraction in new addresses, coupled with this year's post-halving phase, suggests waning network demand for blockspace, potentially indicating a broader cooling of Bitcoin's user base.

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