June was much rougher for Bitcoin than many expected at the start of the month. This is because the price of Bitcoin is virtual decreased throughout the monthleaving many investors behind, especially short-term holdersdisappointed.
Related reading
However, despite the price drop, data on the chain suggests that Bitcoin adoption is growing. New data shows that the number of new Bitcoin addresses being created has risen to its 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 price drop, the network is showing a promising trend that signals future growth for the world’s largest cryptocurrency. According to Glassnode chart data initially shared by crypto analyst Ali Martinez on social media platform
Interestingly, the chart shows that the recent increase in the number of new addresses contrasts with a larger decline in the number of new addresses since November 2023. This new increase indicates an influx of new users entering the crypto space. As more people adopt Bitcoin, demand will inevitably grow, providing a catalyst for price increases in the future.
Moreover, Martinez suggested that the increase in new addresses is due to the comeback of private investors. While institutional investors often drive big market moves, retail interest is crucial to Bitcoin’s mainstream adoption.
Retail #Bitcoin Investors are making a comeback! The number of new ones $BTC The number of addresses on the network rose to 352,124, the highest level since April. pic.twitter.com/GFOHnsokz0
— Ali (@ali_charts) June 29, 2024
Much of the increase in new addresses can be attributed to recent adoption in the Brazilian market. Nubank, Brazil’s largest neobank, recently announced plans to integrate Bitcoin’s lightning network into its services. As the largest fintech bank in Latin America, this integration could potentially expose a significant portion of its 100 million customers to the digital asset.
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 cap in a span of 30 days and bulls are struggling to break above $61,000. This downward trend can be attributed to a sell-off by miners and many long term holders. Specifically, approximately 40,000 BTC were sold by long-term holders in June.
Bear markets are temporary. Bull runs will return. It’s just a matter of when, not if. As the second half of the year approaches, time can only tell how Bitcoin’s price develops. Of course, new wallet addresses don’t directly impact the price, but they are a leading indicator of Bitcoin’s increasing adoption.
Related reading
This adoption and demand, coupled with a recent decline in the number of new Bitcoins coming to market, indicates an increase in the price of Bitcoin in July.
Featured image from CNBC, chart from TradingView
