June has been much tougher for Bitcoin than many had anticipated at the beginning of the month. In fact, the price of Bitcoin is practically decreased throughout the 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 created has reached its highest level in two months. This growth suggests that the long-term outlook for Bitcoin remains strong.
New BTC approaches surge to 2-month high
Despite the price drop, the network is showing a promising trend that foreshadows future growth for the world’s largest cryptocurrency. According to Glassnode chart data initially shared on social media platform
Interestingly, the chart shows that the recent surge in new addresses contrasts with a larger decline in new address creation since November 2023. This new surge indicates an influx of new users entering the crypto space. As more people adopt Bitcoin, demand will inevitably increase, which is a catalyst for a long-term price surge.
Additionally, Martinez suggested that the rise in new addresses came from the return of retail investors. While institutional investors are often behind major market moves, retail interest is crucial to the widespread adoption of Bitcoin.
Retail #Bitcoin Investors are making a comeback! The number of new $BTC The number of 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 was trading at $61,446. The leading digital asset has lost more than 10% of its market capitalization in 30 days and the bulls are struggling to surpass $61,000. This downward trend could be attributed to a massive sell-off by miners and many investors. long-term holders. Specifically, around 40,000 BTC were sold by long-time holders in June.
Bear markets are temporary. Bull runs will return. It’s just a matter of when, not if. As we head into the second half of the year, time can only tell how the price of Bitcoin will fare. Of course, new wallet addresses don’t directly impact the price, but they are a leading indicator of growing Bitcoin adoption.
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This adoption and demand, coupled with a recent decrease in the number of new Bitcoins entering the market, indicates an increase in the price of Bitcoin in July.
Featured image from CNBC, chart from TradingView
