- Bitcoin addresses and new wallets dropped 42% and 47%, signaling slower network activity.
- Investors face $27.89 billion in unrealized losses, mostly self-custody holders.
- Key support levels at $58.7K and $54.7K may influence Bitcoin’s next move.
Bitcoin — BTC, may seem stable on the surface, but underlying activity tells a different story. Network participation has slowed considerably, and fewer addresses are actively transacting. Over the past five years, transaction activity has dropped about 42%, while new address creation has fallen nearly 47%. User growth is lagging, even after recent price highs. Analysts warn that without renewed engagement, Bitcoin could face further pressure, with lower support levels coming into focus.
Declining Participation Signals Trouble
Santiment data shows Bitcoin addresses are much quieter than in past cycles. Fewer people are moving coins, suggesting demand may not match appearances. Growth of new wallets has slowed significantly, indicating that fresh buying interest is not as strong. For any sustainable recovery, on-chain usage must increase alongside price action.
The slowdown in activity has started to impact investor profits. GugaOnChain reports that Bitcoin holders are sitting on almost $27.89 billion in unrealized losses. These losses equal a 23% decline in value from recent highs. Self-custody investors, who bought Bitcoin during the rally, are mostly affected. Falling prices have wiped out months of gains, and many now face difficult decisions.
Even institutional investors feel the pinch. Bitcoin ETFs have seen around $8.5 billion in losses since October. These combined pressures highlight that the market is under stress and a rebound may take more than price alone. Analysts are watching activity trends closely to gauge potential support levels and recovery chances.
Support Levels and Potential Risks
Analyst burakkesmeci points to a key development: Bitcoin recently fell below the New Whales’ realized price of $88.7K. Historically, when this price level breaks, Bitcoin often moves toward lower support zones. Investors should monitor these levels closely to understand where buyers may step in. The next major benchmarks include the Binance user deposit address realized price at $58.7K and the overall realized price at $54.7K.
These figures represent the average cost basis for many holders and often act as strong support. If Bitcoin approaches these levels, more cautious buying could emerge. However, continued low activity and declining demand could push prices lower before recovery attempts succeed. Investor sentiment will play a crucial role in the coming weeks. Unrealized losses weigh on confidence, and slower network participation may limit short-term recovery.
Overall, the combination of falling activity, unrealized losses, and declining wallet growth suggests caution. Bitcoin prices may hold temporarily, but further downward movement cannot be ruled out. Monitoring support levels and on-chain metrics will help traders identify potential turning points and better understand market dynamics.
