The on-chain activity of Bitcoin (BTC) has dipped sharply during the last few days amid a drop in the price of BTC. According to the latest weekly on-chain report published by the crypto analytics platform, Glassnode, active Bitcoin addresses reached 0.94 million last week, which is down by nearly 18% from the recent highs.
Glassnode mentioned that the total transfer volume settled by the Bitcoin network has seen a sharp drop of 65% in the last two weeks. The volume dropped from $43 billion per day to approximately $15 billion per day.
As of writing, the total market cap of Bitcoin stands at around $620 billion, which is down from $1.1 trillion on 10 May 2021. The total market cap of BTC is now up by nearly 12% since the start of 2021. Bitcoin has a market dominance of 41.5%.
“During the recent sell-off, the Bitcoin network experienced a reduction in active addresses, down 18% from the recent highs to around 0.94M. The total USD denominated transfer volume settled by the BTC network has pulled back by a whopping 65% in the last two weeks. Change-adjusted transfer volume fell from over $43B/day down to $15B/day. Again, the 2017 aftershock is the only event of comparable scale where on-chain settled volume fell by 80% over a period of around 3 months,” Glassnode mentioned in the report.
In a recent report published by CoinShares, a crypto asset management firm based in the UK, Bitcoin investment products saw record outflows during the first week of June 2021. “The negative sentiment was again focused on Bitcoin which saw outflows totaling US$141m, marking the largest single week of outflows on record,” CoinShares mentioned in the report.
Furthermore, large Bitcoin addresses have started moving the world’s most valuable digital currency from crypto exchanges to digital wallets. Whale Alert highlighted a move of 3,706 BTC worth more than $123 million today from crypto exchange Coinbase to a digital wallet.