As a seasoned researcher with over a decade of experience in the cryptocurrency market, I find myself both intrigued and cautiously optimistic about the recent surge in new Bitcoin addresses. The chart clearly shows a reversal trend since June’s bottom, suggesting a potential influx of new users into the network.
The Bitcoin network is experiencing a significant surge of new participants, as indicated by on-chain statistics, following periods of reduced adoption earlier this year when the number of users hit record lows.
Bitcoin New Addresses Has Reversed Trend Since June Bottom
Based on information from the market analysis tool IntoTheBlock, there’s been an increase in the number of new Bitcoin wallets transacting on the network lately. A “new wallet” refers to one that has carried out its initial transaction within the system.
When fresh addresses appear on the blockchain, there could be several explanations behind this. One possibility is an increase in new users, as incoming investors creating their own addresses allows them to engage in trading activities. Alternatively, it might be current users establishing additional wallets for reasons related to privacy.
Generally speaking, when we see an increase in this metric, it’s likely that these two factors are influencing it to some extent. This suggests that there might be a rise in the overall adoption of the cryptocurrency. Over time, increased adoption is generally considered positive for any cryptocurrency’s price growth.
Now, here is a chart that shows the trend in the new addresses for Bitcoin over the past decade:
Over the course of this year, I’ve noticed a consistent decline in the number of new Bitcoin addresses I’m tracking. This trend hit a rock bottom around early June, following a significant dip that marked some of the lowest figures in years. However, it’s important to note that despite these low points, there seems to be a potential turning point on the horizon.
One possible explanation for the decrease could be the introduction of direct trading exchange-traded funds (ETFs) specifically designed for cryptocurrencies. These financial tools offer investors a different way to track and profit from changes in the value of the digital currency.
For novice investors, it might be more convenient to put their money into Exchange-Traded Funds (ETFs) focusing on specific stocks, as they operate on traditional stock markets. This could be a less daunting option compared to navigating the relatively uncharted waters of digital asset wallets and exchanges.
Over the past few months since June, there’s been a turnaround in the daily new address count for the Bitcoin blockchain, which was previously declining. Despite not yet approaching the levels before this year’s dip, the metric has surprisingly increased by 35%.
If the recent upward movement in the cryptocurrency’s price marks a longer-term pattern, it might attract more new investors, which could potentially boost the crypto’s value further.
In related updates, it’s been disclosed in a recent weekly report from Glassnode that Bitcoin owners holding for the long term have been expanding their stockpile.
In the Bitcoin market, investors are typically divided into two groups based on how long they hold their assets: short-term and long-term holders. The distinction is made by considering the holding period, with a duration of approximately 155 days marking the boundary between these two categories.
Long-term holders (LTHs) are often referred to as the steady investors in the market who seldom sell their cryptocurrencies. However, even though they’re known for their toughness, the remarkable surge to record-high prices at the start of the year was such a lucrative opportunity that it compelled these committed holders to partake in substantial selling.
Nonetheless, the latest increase in the LTH supply shows HODLing behavior is back on the Bitcoin network, as STHs are maturing into the cohort.
BTC Price
Bitcoin’s trajectory over the past few days has been relatively stable, with its current value hovering near $66,600.
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2024-08-01 13:42