Rise in New Bitcoin Addresses Suggests Renewed Interest from Retail
Rise in New Bitcoin Addresses Suggests Renewed Interest from Retail
Since November 2023, the number of daily new Bitcoin addresses had been on a decline.
Author Ruholamin Haqshanas Author Ruholamin Haqshanas About Author Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto... Author Profile Share Copied Last updated: August 9, 2024 03:11 EDT
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Retail investors may be making a comeback in the cryptocurrency market, as evidenced by a recent uptick in the number of new Bitcoin addresses being created daily.
In a recent post on X, market intelligence platform IntoTheBlock highlighted this trend, suggesting that the increasing number of new addresses indicates growing interest from retail participants.
Since November 2023, the number of daily new Bitcoin addresses had been on a decline, which many analysts viewed as a bearish signal, pointing to a drop in new participants, particularly retail investors.
However, this downward trend seems to be reversing, with recent data showing an upward trajectory in new address creation over the past few weeks.
Bitcoin's New Addresses Show Renewed Interest
Since November 2023, The number of daily new addresses has trended downward, a bearish signal indicating fewer new participants, particularly on the retail side.
However, the trend seems to be shifting, with the number of new… pic.twitter.com/EpAjaqpcZG — IntoTheBlock (@intotheblock) August 8, 2024
New Bitcoin Addresses Reach Lowest Point in 2024
Crypto analysis platform Glassnode reported that the number of new Bitcoin addresses in 2024 reached its lowest point of 203,536 on June 7.
Since the beginning of August, however, this number has risen, fluctuating between a low of 286,000 and a high of 337,000.
The rebound is seen as a positive indicator, potentially leading to a more balanced market and laying a stronger foundation for future growth.
Amidst these developments, Bitcoin’s price has also shown signs of volatility.
On August 5, the cryptocurrency experienced a sharp decline, dropping to $49,221 according to CoinGecko.
However, by August 8, Bitcoin had recovered, climbing back above $62,000.
Benjamin Cowen, founder of ITC Crypto, expressed concern over a potential “death cross” in the market, a technical pattern that occurs when the 50-day simple moving average (SMA) falls below the 200-day SMA.
While Cowen warned that Bitcoin’s durability would depend on its ability to hold the $62,000 level, another analyst, Timothy Peterson, offered a more optimistic view.
Peterson noted that despite the looming death cross, Bitcoin has historically shown resilience, with the cryptocurrency rising 62% of the time within 60 days after such an event since 2015.
Spot Bitcoin ETFs See Inflows
On Thursday, spot bitcoin exchange-traded funds (ETFs) in the U.S. saw a notable surge in positive flows, totaling $192.56 million.
According to data from SoSoValue, BlackRock’s IBIT led the pack with an impressive $157.6 million in inflows.
WisdomTree’s BTCW emerged as a surprising contender, attracting $118.52 million in inflows—its highest yet and more than ten times its previous record set just a day earlier.
This was followed by Fidelity’s FBTC, which recorded $65.25 million in net inflows, and Ark Invest and 21Shares’ ARKB, which brought in $32.79 million.
On the other hand, Grayscale’s recently converted GBTC fund experienced significant net outflows, totaling $182.94 million.
Hashdex’s spot bitcoin fund also saw $2.03 million exit the product.
The total trading volume for spot bitcoin ETFs on Thursday reached $2 billion, up from $1.79 billion on Wednesday.
Since their launch in January, the 12 spot bitcoin ETFs have collectively accumulated $17.43 billion in net inflows.
Meanwhile, spot Ethereum ETFs in the U.S. experienced closely matched inflows and outflows yesterday, resulting in a total net outflow of $2.87 million.