June was much tougher for Bitcoin than many expected at the beginning of the month. This is because the price of Bitcoin was virtually decline over the monthleaving many investors, especially short-term holdersdisappointed.
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However, despite the price decline, on-chain data suggests that Bitcoin adoption is growing. New data shows that the number of new Bitcoin addresses created has reached its highest level in two months. This growth suggests that the long-term outlook for Bitcoin remains strong.
New BTC addresses reach 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 on social media platform X by crypto analyst Ali Martinez, new BTC wallet addresses have been steadily increasing over the past week to reach 352,124, their highest level since April.
Interestingly, the chart shows that the recent increase in new addresses contrasts with a larger decrease in new address creation since November 2023. This new increase points to an influx of new users entering the crypto space. As more people adopt Bitcoin, demand will inevitably grow, which is a catalyst for price increases in the future.
Additionally, Martinez suggested that the increase in new addresses is due to the return of retail investors. While institutional investors often drive large market movements, retail interest is crucial to Bitcoin’s widespread adoption.
Retail #Bitcoin investors are coming back! The number of new $BTC Addresses on the network jumped to 352,124, marking 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 is trading at $61,446. The leading digital asset has lost over 10% of its market value in a span of 30 days and bulls are struggling to break above $61,000. This downtrend can be attributed to a sell-off by miners and many long term holders. Specifically, around 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. With the second half of the year approaching, time can only tell how the price of Bitcoin will develop. Of course, new wallet addresses do not directly affect the price, but they are an important indicator of Bitcoin’s growing adoption.
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This adoption and demand, coupled with a recent decrease in the number of new Bitcoins entering the market, points to an increase in the price of Bitcoin in July.
Featured image from CNBC, chart from TradingView