The number of active Bitcoin users' addresses has falln to its lowest level

[Alikhaki123]

The number of active Bitcoin users' addresses has falln to its lowest level since April 2020
With the decline in the price of Bitcoin and the frustration of some investors of this cryptocurrency from setting new records, the number of active bitcoin users' addresses has fallen to its lowest level since April 2020, which is a serious alarm for this popular cryptocurrency. With a large proportion of new investors leaving the market after recent falls, the share of whales (large holders) of total Bitcoins has now reached new historical records.

[BitMaxz]

If it is April 2020 then no you need to check the data or chart from the link below but if you talking about April 2021 then yes we see active users drop because most of the users only buy and hold.

- https://studio.glassnode.com/metrics?a=BTC&m=addresses.ActiveCount

As you can see the active BTC address from April 2020 to April 2021 is rising but it doesn't mean that new investors are leaving on the market.

And the reason why we see active users increase is due to Bitcoin price popularity if the price of BTC keeps increasing the number of active bitcoin users also increases.

[GreatArkansas]

It's really not clear if this is only the basis we will look since not decrease on Bitcoin users' addresses could always decrease in price too or people are intended to selling their Bitcoin, +1 to @BitMaxz, they could intend to hodl their Bitcoin instead of spending it.
And in addition, people are also afraid to buy these days.

[flip4flop]

I would assume this is because most people who bought Bitcoin because it was "going up" dont know how to use it or what it is for besides going "to the moon". I would imagine that most of these people are trapped and bagholding at this point because they bought in at the high and will just hold it. You wont see a spike in new addresses going live until we start breaking above 50k.  If we dont push to a new ATH shortly after that I would imagine we see some increased selling as those who bought near those levels can get out.

[franky1]

address counting is meaningless

whenever fee's are low. people like to move their coins spread across many addresses into a more single pot of funds in 1 address.

EG
april 2021 had highest address count(>1m)...... and highest fee's(>0.001)
as the fees went down the address count went down
june 2021 addresses (<600k) fees (<0.00017)

[pooya87]

The number of active Bitcoin users' addresses has falln to its lowest level since April 2020

Wrong.
We have no way of counting how many bitcoin users there are. One user can have millions of active addresses and some day decide to consolidate all of them into one but when he does that it doesn't mean the number of bitcoin users fell by 1 million!

With the decline in the price of Bitcoin

Wrong again.
The price has been rising for the past month, practically starting from July 20.

[Fundamentals Of]

I don't see this as an alarm, much less a serious alarm. And the reference is just a year ago. There is nothing special about it. Also, the price of Bitcoin is not really declining. There is a decrease in the past days but it is not even an alarming decrease. There is in fact a price increase in the past months.

If the investors are that too much in a hurry for Bitcoin to set another new price record, then they should just leave the Bitcoin market. They must not have been properly informed of the kind of market they are getting into.

[TheBeardedBaby]

There's one other logical explanation, due to the last bull run (and we are still in it) btc dominance fell under 50% sometime in April, since then people are actively trading altcoins because of the higher gains, and these days there are much more stable coins that before so exiting the market it not always necessary to be in btc like it used to be before. On the other side there were many newbies joining the market, who lost a lot and quit. There are things that were not seen before like pumps with only a tweet of one person, moving the market of specific coin in seconds.
The greed is dragging people to altcoins but most of the time the altcoins are only the tool to make more btc  so wait until the altcoin season is over all will be back to "normal". For me it is completely OK.

[Kakmakr]

Most Bitcoin activity happens on exchanges and not from Bitcoin address to Bitcoin address. Most people are hoarding their coins in cold storage now, because the price recovery is still in motion. 

We will start to be concerned when the volume of transactions on the Exchanges goes down, because that is the true indication that something is wrong.

If Bitcoin was used more as a currency globally, then transfers from one address to the next, would be concerning, but unfortunately... Bitcoin is used more as a "Commodity". 

[witcher_sense]

What does that mean to be an active bitcoin user? And how can activity be properly evaluated if there are no user accounts, no identities, no centralized entities to register transactions? The only way it can be done, at least that immediately comes to my mind, is by counting how many verified accounts on exchanges there are and how many of them are actively trading, depositing, and withdrawing. This number is fluctuating and gradually declining because people finally realized that holding usually brings more profit than active trading. The second reason why the number of verified accounts starts to fall is the concept of self-custody of your keys. With so many regulations aimed at preventing you from using bitcoin freely, people are simply forced to behave differently, they started to get rid of undesirable intermediaries. The third reason I can think of is capital gain tax - to avoid paying huge taxes people are incentivized to hold and never sell their bitcoins.

[ivankoh]

The number of active Bitcoin users' addresses has falln to its lowest level since April 2020
With the decline in the price of Bitcoin and the frustration of some investors of this cryptocurrency from setting new records, the number of active bitcoin users' addresses has fallen to its lowest level since April 2020, which is a serious alarm for this popular cryptocurrency. With a large proportion of new investors leaving the market after recent falls, the share of whales (large holders) of total Bitcoins has now reached new historical records.

How to display active bitcoin address correctly?  The decrease in trading volume was clearly due to FuD and they moved into the hoard, hold phase.  This does not mean bitcoin is on the decline, it has extended a bullish structure for almost a month so far.  Even more optimistic when above $50k i guess.  Relying on addresses is completely baseless.

[ranochigo]

Perhaps there is no need for on-chain transactions? With high transaction fees, no one wants to really spend their Bitcoins nor take it out of their exchange. I don't think that "active" addresses are a suitable metric for measuring how many Bitcoin users because there are so many factors and the results are often fairly skewed.

[NeuroticFish]

the number of active bitcoin users' addresses has fallen to its lowest level since April 2020, which is a serious alarm for this popular cryptocurrency. With a large proportion of new investors leaving the market after recent falls, the share of whales (large holders) of total Bitcoins has now reached new historical records.

We're in the middle of a bull run. More people are HODLing, why would they spend now?
Lightning Network gained popularity. Off-chain transactions are not counted.
Counting the "active" addresses is more and more an useless and inaccurate indicator; of course, it's good for a bit of FUD 

[BlackHatCoiner]

Why should we count in users' addresses? You may make falsely assumptions that way. There are people who prefer to use one address, who do not understand that this ruins their privacy, and there are others who protect it by using their hierarchical deterministic wallet as it should.

If one has 10 BTC scattered in 10,000 different addresses and loses their seed phrase, the percentage of active users' addresses drops, but we should not conclude anything about the users.

[Tim-BTC]

Some investors believe that Beluga has started to hold Bitcoin in multiple addresses. The change in the number of bitcoin addresses may not fully represent the number of investors entering or delisting the market, which may also mean that "white whales" are investing in other more volatile digital assets.

[Text]

The price change has nothing to do with its decrease or increase in the number of active addresses.  That is not the basis for determining the decrease or increase in value.  Even to the analysts, it is not serious for them.  They will take a closer look at the current state of BTC's dominance in the market.  There are reasons why there is an increase in the number of new active addresses, especially during the bull run, the arrival of new ATH, and the entry of new investors into the market where trading has become very active ... So far it can be said we go down the number because those who know to prefer to still hold their coins so there isn’t much activity in their addresses.

[Kong Hey Pakboy]

+1 to @BitMaxz, they could intend to hodl their Bitcoin instead of spending it.
And in addition, people are also afraid to buy these days.

That's what I was thinking too, they are hodling that's why there's not a lot of activity in their wallets thus reduction in the active addresses. I am not so sure about being afraid buying though, they're probably just waiting for the right price or having enough money to buy.

[SFR10]

the number of active bitcoin users' addresses has fallen to its lowest level since April 2020, which is a serious alarm for this popular cryptocurrency.

It's not... Not every fall/decline is an indication that something bad is about to happen. On the contrary, I think it's a positive thing that fewer newbie investors ^{[most likely]} are buying/selling at the moment ^{[they just come and go (don't pay too much attention to those numbers)]}.
^{- The only thing that should matter, is if the amount of "true BTCitcoiners" goes down drastically [there's no way to accurately measure it (like what @pooya87 said)], as opposed to those that "only" see it as an investment asset!}

[stompix]

The number of active Bitcoin users' addresses has falln to its lowest level since April 2020

Wrong.
We have no way of counting how many bitcoin users there are. One user can have millions of active addresses and some day decide to consolidate all of them into one but when he does that it doesn't mean the number of bitcoin users fell by 1 million!

He is right, he didn't say the number of active users, but the number of active addresses, and that is going down. The number of users might even go up at this point, nobody knows, but it's clear overall usage is going down, can you remember how long ago was it when we last had 1sat transactions getting confirmed during the normal weekdays?
Look at the number of transactions also, we're back to 2018 numbers.

Slowly bitcoin turns into gold, when gold coins were too precious to buy stuff with it and we're far more often buried in a pot in the garden.

Why should we count in users' addresses? You may make falsely assumptions that way. There are people who prefer to use one address, who do not understand that this ruins their privacy, and there are others who protect it by using their hierarchical deterministic wallet as it should.

You're making a mistake, you're comparing things rather than comparing the evolution of the given statistics.
The same people you think we're using 10 addresses or 1 or a million were doing the same 6 months ago, 3 years ago and they will probably do this in the future also. The fact is that the number of those used addresses is going down, so it's clear a portion of that user base is shrinking.

Perhaps there is no need for on-chain transactions? With high transaction fees, no one wants to really spend their Bitcoins nor take it out of their exchange.

When a 5 sat/b could have got you into the next block for like 90% of the time during the last month, I doubt it's because of the fees.

[pooya87]

He is right, he didn't say the number of active users, but the number of active addresses, and that is going down. The number of users might even go up at this point, nobody knows, but it's clear overall usage is going down, can you remember how long ago was it when we last had 1sat transactions getting confirmed during the normal weekdays?
Look at the number of transactions also, we're back to 2018 numbers.

Slowly bitcoin turns into gold, when gold coins were too precious to buy stuff with it and we're far more often buried in a pot in the garden.

You are forgetting that the biggest number of on-chain transactions have always been coming from day-traders. And traders need volatility to make profit and bitcoin price has been stable most of the past ~3 months in the $30k range with very little movement. And when 90% of days you can't make a profit, you exit the market and don't make any new transactions. Hence the number of on-chain txs fall.
It is not just 2018 numbers, we have it every now and then. We saw it from Nov 2019 to Jan 2020 when price was stuck in $6k, then again in June to August 2020 when price wasn't able to break $10k and ....

During times like $30k when people are brainwashed to think this is 2018 bear market again, they stay away from the market hence even less on-chain tx volume (and also less trading volume). Even when the reversal starts and price reaches $50k they still remain brainwashed until it is too late then they suddenly jump back and we see 100 sat/vbyte fees again at $70k price.

In short this has very little to do with bitcoin usage.