Number of new Bitcoin wallets drops to 6-year low

The number of new Bitcoin (BTC) wallets, an important metric for the adoption of the decentralized crypto network, has fallen to the lowest level since 2018. While just six months ago the number of newly created wallets was close to a record high. Why has interest in Bitcoin declined so much since then?

BTC wallets bottom

Data from The Block shows that the Bitcoin network welcomed an average of around 275,000 new wallets every day last week. As mentioned, this is the lowest level in no less than 6 years.

Fewer and fewer new Bitcoin wallets have been created for some time now. As of mid-September last year, the metric was still at one of its highest levels ever; at the time, an average of about 625,000 new wallets were created every day. However, things have only gone downhill since then.

The number of new wallets is now a far cry from the glory days of September last year. To be precise, roughly 56 percent fewer wallets are now being created every day.

Various factors can be pointed to as explanations for the significant decrease. First of all, there was still a lot of hype in September last year because of the Bitcoin halving that was getting closer.

In addition, Bitcoin enjoyed a lot of interest at the time because it seemed almost certain that the American spot Exchange-Traded Funds would be approved within a few months. Finally, various developments within the ecosystem, such as the earlier arrival of Ordinals, resulted in many new users on the network.

BTC price climbs out of its valley, will the number of addresses follow?

The Bitcoin price has skyrocketed in the past week thanks to favorable inflation figures in the United States. Yesterday the week ended with a so-called bullish engulfing candle, which simply means that the recent green candle is larger than the red candle from a week earlier. This bullish pattern indicates a possible trend reversal.

Whether the weeks-long correction can finally be put to an end is of course anything but a certainty. If bitcoin moves towards its all-time high again, more people will probably create their own wallets. The higher the price, the greater the interest in the world’s largest cryptocurrency.

At the time of writing, the BTC price is fighting $67,000. To match the record price of almost $74,000, which was reached in mid-March, BTC will have to rise another 10 percent.

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