Active Bitcoin addresses fall to a six-month low

Events in May 2021 led to a reduction in Bitcoin’s on-chain activity. The seven-day moving average of active addresses fell to its lowest since November 2020, according to Arcane Research.

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— Arcane Research (@ArcaneResearch) June 1, 2021

The metric’s peak occurred in January this year, with the May high (1.235 million) nearly reaching it.

Analysts noted that, historically, a decline in the metric has correlated well with a drop in Bitcoin’s price. They suggested that further negative momentum in the metric could signal the formation of a price peak for digital gold in April this year.

“However, there have previously been episodes of sharp recoveries in both metrics. For this reason, only time will tell how events will unfold this time,” they added.

Fees on the Bitcoin and Ethereum networks fell to January levels.

For more on the correction of the leading cryptocurrency, read ForkLog article.

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