Bitcoin Activity Surges Despite 2.5% Weekly Price Decline

Bitcoin’s price has remained relatively stable over the past week, with minimal fluctuations. As of June 5, Bitcoin was trading around $104,300, marking a 0.50% decrease in the last 24 hours and a 2.5% decline over the past seven days. Despite this price stagnation, there are clear indications of heightened activity within the Bitcoin network.

One of the most notable signs of increased activity is the surge in new wallet creations. On May 29, nearly 557,000 new wallets were created, the highest number since December 2023. This surge suggests that a significant number of individuals are opening wallets despite the price remaining just under $105,000. People typically create new wallets to send and receive bitcoins, often driven by new sources of information, increased discussions among peers, or simple curiosity. The rise in wallet creation indicates a broader adoption and usage of Bitcoin.

In addition to the increase in wallet creation, there has been a significant rise in token movement. On June 2, over 241,360 BTC changed hands, marking the busiest day since December 2024. This high level of coin turnover is often associated with increased network traffic. Traders might be moving coins in and out of exchanges, or investors could be shifting wallets. Large swings in daily token movement can indicate a shift in sentiment, with people either preparing to buy or sell. Currently, it appears that more users are sending coins to each other, keeping the network active even as the price remains stable.

Data from IntoTheBlock reveals that large holders, often referred to as “whales,” are accumulating more Bitcoin. Their coin inflows increased by 145% over the last seven days and by 214% over the past 30 days. When big players accumulate coins, it can reduce the supply available on exchanges, making it more challenging for new buyers to enter the market without driving the price higher. If whales continue to buy at this rate, it could exert upward pressure on the price once everyday investors re-enter the market.

It is not just the large holders who are increasing their Bitcoin holdings. Wallets holding between 10 and 10,000 BTC added more than 79,000 BTC in just one week, averaging around 11,320 BTC per day. As of June 2, these mid-tier holders collectively held over 13 million BTC. The accumulation by both large whales and mid-level holders further reduces the number of coins available on exchanges. With fewer coins in circulation, any shift in demand could have a more pronounced impact on the price.

In summary, despite the quiet market conditions, the Bitcoin network is experiencing a boom in activity. The creation of new wallets, increased token movement, and the accumulation of coins by both large and mid-tier holders all point to a growing interest and engagement within the Bitcoin ecosystem. These developments suggest that the network is becoming more active and that the underlying fundamentals may be strengthening, even if the price has not yet reflected these changes.