Cryptocurrency analyst Ali has identified an intriguing trend in the Bitcoin market. He reports that approximately 527,000 new Bitcoin addresses are being created daily, marking a new yearly high. This observation is based on data from Glassnode.
— Ali (@ali_charts) September 8, 2023
Ali points out that the number of new Bitcoin addresses has been steadily rising, with a notable surge occurring between late August and early September when new addresses exceeded 510,000. In contrast, back in May, Bitcoin averaged around 390,000 new addresses daily. This recent increase is seen as a positive sign.
Positive Sign of Growing Interest
The surge in new addresses is viewed as a positive indicator of sustained interest and trust in the Bitcoin network. Despite Bitcoin’s recent price fluctuations and subdued trading, the network continues to attract new participants.
Additionally, IntoTheBlock, an on-chain analytics firm, reported a 38% increase in Bitcoin network fees during the week. This increase coincided with a rise in Ordinals inscriptions, reaching their second-highest daily volume.
Bitcoin Price Outlook
Bitcoin’s price has been fluctuating below the $26,000 level, currently sitting at $25,860. While it briefly surpassed $26,000 recently, sustained bullish momentum has been elusive. Bitcoin experienced a significant sell-off in the past week, breaching key moving averages.
Despite the technical challenges, there remains hope for a potential Bitcoin price recovery. The growing number of new addresses and increased network activity suggest ongoing interest in the cryptocurrency, despite recent market turbulence.