Bitcoin Remains Bullish As New BTC Addresses Rise To New 2-Month Highs
June was more difficult for Bitcoin than many expected at the beginning of the month. This is because the price of Bitcoin is approx it has declined for a monthleaving many investors, especially short-term holdersdisappointed.
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However, despite the price drop, on-chain data suggests that Bitcoin adoption is growing. New data shows that the number of new Bitcoin addresses being created has risen to the highest level in two months. This growth suggests that the long-term prospects for Bitcoin remain strong.
New BTC Addresses Rise to 2-Month High
Despite the drop in price, the network shows a promising trend that shows the future growth of the world’s largest cryptocurrency. According to Glassnode chart data originally shared on social media platform X by crypto analyst Ali Martinez, new BTC wallet addresses rose steadily last week to reach 352,124, its highest level since April.
Interestingly, the chart shows that the recent increase in new addresses is in contrast to the sharp decrease in the creation of new addresses since November 2023. This new increase points to an influx of new users entering the crypto space. As more and more people use Bitcoin, demand will inevitably increase, causing prices to rise down the line.
In addition, Martinez suggested that the increase in new addresses comes from returning retail investors. While institutional investors often drive large market moves, retail interest is essential to Bitcoin’s mainstream adoption.
Selling #Bitcoin investors are coming back! New number $BTC addresses on the network increased to 352,124, marking the highest level since April. pic.twitter.com/GFOHnsokz0
– Ali (@ali_charts) June 29, 2024
A large part of the increase in new addresses can be attributed to recent acquisitions in the Brazilian market. Nubank, Brazil’s largest neobank, recently announced plans to integrate the Bitcoin lightning network into its services. As the largest fintech bank in Latin America, this merger could expose a large portion of its 100 million customers to digital assets.
What’s Next for Bitcoin?
At the time of writing, Bitcoin was trading at $61,446. The leading digital asset has lost more than 10% of its market capitalization in a 30-day period and the bulls are struggling to break above $61,000. This decline may be due to the sale of miners and many others long term owners. Specifically, in the world 40,000 BTC they were sold by the long-term owners in June.
Bear markets are temporary. The bull run will return. It’s just a matter of when, not if. As the second half of the year is now approaching, time can only tell how the price of Bitcoin starts. Of course, new wallet addresses do not directly affect prices, but they are a leading indicator of the growth of Bitcoin adoption.
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This acceptance and demand, coupled with the recent drop in the number of new Bitcoins entering the market, he points to the increase on the price of Bitcoin in July.
Featured image from CNBC, chart from TradingView
