Bitrabo Editorial
A surge in new users is evident in the Bitcoin network as on-chain data indicates a significant increase in adoption after experiencing low levels earlier this year.
Reversal in Bitcoin New Addresses Trend
Recent data from market intelligence platform IntoTheBlock reveals a growth in daily new addresses within the Bitcoin network. A “new address” signifies a first-time transaction on the network.
New addresses appearing on the blockchain could result from new users entering the market, creating addresses to engage in trading. Alternatively, existing users might be creating multiple wallets for privacy purposes.
The rise in this metric indicates a degree of net adoption, which typically has a positive impact on a cryptocurrency’s long-term price trajectory.
The chart below illustrates the trend in new Bitcoin addresses over the past decade:
While Bitcoin new addresses had been declining earlier this year, the metric bottomed out at the start of June after reaching multi-year lows.
The launch of spot exchange-traded funds (ETFs) may have contributed to this decline, providing a different method for investors to access Bitcoin price movements through traditional exchanges.
Since hitting a low in June, daily new addresses on the Bitcoin blockchain have shown a positive trend, seeing a 35% increase. This influx of new users could potentially benefit the cryptocurrency’s price moving forward.
In a related development, long-term Bitcoin holders have recently increased their supply, as indicated in the latest report from Glassnode.
Short-term holders (STHs) and long-term holders (LTHs) are the two main categories in the Bitcoin market based on holding time, with a cutoff of 155 days differentiating between them.
LTHs, known as HODLers, are steadfast in holding onto their coins. Despite participating in selling during the rally to the all-time high earlier this year, recent data suggests a resurgence in HODLing behavior among LTHs.
Bitcoin Price Movement
Bitcoin’s price has stabilized around $66,600 following a recent dip, trading sideways in the market.