Bitcoin Active Addresses Recovers Above 1 Million

The number of bitcoin active addresses had declined following the September market crash but promptly picked up again in October. At the beginning of December, another dip rocked the market that sent addresses plummeting once more. The number had dropped well below the one million mark for the majority of November and stayed low during the bull rally.

Despite the red trends recorded by the market, the first week of December has proven to be good for the market. The number of bitcoin addresses rose significantly in the last seven days, putting bitcoin well above the one million mark once more.

Related Reading | Majority Of Bitcoin Investors Got In This Year, Says Grayscale

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Active Addresses Clock One Million

The number of active Bitcoin addresses has climbed above one million multiple times this year. Following the market crash in April, this number had risen to one of its highest points cine January, settling above 1.2 million active addresses. However, the May spike would prove to not last as a sharp decline between June and July brought the number to its lowest point for the year.

This dragged on with the summer lull as the number of active addresses had plunged below 750,000. However, there has been a steady climb in this number all through the rallies that followed with the eventual endpoint landing above one million active addresses. This represents a seven-month high since the decline in June.

Chart showing number of bitcoin active addresses

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BTC active addresses climbs | Source: Arcane Research

The recovery in the number of bitcoin active addresses looks to be following the sell-off trend similar to the May climb. As prices drop, investors are usually taking advantage of this to add to their positions, while those who could not get in because the asset’s price was too high could use the price dips as a perfect entry point into the market.

However, the sell-offs happening in the market could also cause the number of active addresses to decline again as investors offload their holdings on the market.

Related Reading | Bitcoin Open Interest Takes Second Largest Dump Of 2021

Bitcoin Unrealized Profit Declines

As the number of bitcoin active addresses has risen, unrealized profits have gone the opposite direction. The last price job brought down unrealized profit to a smaller margin. The Market Value to Realized Value (MVRV) had peaked in October after the bitcoin price rally at 2.82 but has subsequently dropped to 2 in December.

Chart showing bitcoin unrealized profits

BTC unrealized profits decline | Source: Arcane Research

This is not to say that MVRV is sitting at a disadvantaged position as 2 falls into the healthy range given that unrealized profits are down for the month. According to Arcane Research, this means that investors are less likely to sell given that the profit margin for their investments is low.

MVRV hit its highest point in the spring at 3.96, a four-year high since the last record set at 4.72 in 2018. It touched a low for the year in mid-July this year, ending up at 1.54.

Bitcoin price chart from

BTC continues to suffer dips | Source: BTCUSD on
Featured image from iStock, charts from Arcane Research and


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Weekend Volatility Awakens Bitcoin Buyers, Active Addresses

Following the volatility of the weekend, Bitcoin holders seem to have woken up as active addresses break one million.

Number Of Active Bitcoin Addresses Reach Seven-Month High

As per the latest weekly report from Arcane Research, the crash during the weekend woke up sleeping Bitcoin investors as the number of active addresses observes a significant increase.

The “number of active addresses” is a Bitcoin indicator that measures the amount of addresses that showed some activity on the chain during a particular day.

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If an addresses makes more than one move in a given day, the metric still only counts it as one active address. Because of this, the indicator may tell us an accurate picture about how many BTC holders shifted their coins that day.

When the number of active addresses rise in value, it means market activity is going up, and previously dormant addresses could be coming back up. This trend is usually seen around periods of high volatility.

On the other hand, when the indictor’s value goes down, it implies there aren’t many holders making moves. Such a trend may mean that investors are currently waiting to see the price make moves before they shift their positions. It may also simply be because of a lack of interest in the market at the time

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Related Reading | Ethereum Strength Sends Bitcoin Ratio To 2018 Highs

Now, here is a chart that shows the trend in the value of the number of active addresses over the past year:

Bitcoin Active Addresses

Looks like the value of the indicator has been moving up for a while | Source: The Arcane Research Weekly Update - Week 48

As the above graph shows, the number of active Bitcoin addresses saw a sharp spike recently. The crash in the crypto’s price during the weekend was responsible for this sudden rise in the metric’s value.

Currently, the indicator’s value is above 1 million, the highest it has been in the past seven months. The last time higher values were seen was back in May, following the crash.

Related Reading | Majority Of Bitcoin Investors Got In This Year, Says Grayscale

As the market cooled down, there were only about 750k active addresses left by July. Since the bottom in that month, the indicator has been gradually rising in value.

It’s yet unclear if the current high values will continue to rise, or if the indicator’s value will once again drop down as the market calms down from the weekend’s volatility.

BTC Price

At the time of writing, Bitcoin’s price floats around $49k, down 24% in the last month. The below chart shows the trend in the price of BTC over the past five days.

Bitcoin Price Chart

BTC still in consolidation? | Source: BTCUSD on TradingView
Featured image from, charts from, Arcane Research


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Bitcoin (BTC) $ 26,581.12 0.27%
Ethereum (ETH) $ 1,593.36 0.17%
Litecoin (LTC) $ 65.01 0.06%
Bitcoin Cash (BCH) $ 209.04 0.14%