Darkfost
Bitcoin depositing addresses fall to a 10 year low
The number of addresses depositing BTC on exchanges is currently collapsing, a clear signal of slowing activity across the market. With around 31,000 addresses depositing BTC per day (30-dma), the indicator has now reached its lowest level of the past ten years. For comparison, the annual average stands near 47,000 addresses, bringing overall activity back to levels last observed in 2017. Historically, this type of sharp contraction in the number of depositing addresses tends to occur when bear markets are in advanced phases as the interest in the market gradually fades. This trend highlights several key points : - First, during prolonged correction phases, some investors completely disengages from the market. This loss of interest is also reflected in the decline of active addresses, indicating that fewer participants are interacting with the network. - Second, current price levels do not appear to incentivize investors to move their BTC to exchanges in order to sell. On the contrary, they seem to favor a holding strategy, keeping their coins while waiting for more favorable market conditions. - Third, the structure of the market has evolved over recent years. A growing share of investors now prefers self custody solutions or decentralized trading platforms, allowing them to maintain direct control over their assets and reduce their exposure to counterparty risk associated with centralized platforms, particularly after major events such as the collapse of FTX. The sharp decline in depositing addresses on exchanges therefore reflects a market characterized by gradual participant disengagement and a clear slowdown in activity. Although such an environment is typically unfavorable in the short term, these phases often coincide with periods where selling pressure progressively exhausts itself.