June was a much tougher month for Bitcoin than many expected at the start of the month, as the Bitcoin price virtually fell throughout the month, disappointing many investors, especially short-term holders.
However, despite the price decline, on-chain data suggests that Bitcoin adoption is growing. The number of new Bitcoin addresses created has surged to its highest level in two months, according to new data. This growth suggests that Bitcoin’s long-term prospects remain strong.
New BTC Addresses Surge to 2-Month High
Despite the price crash, the network is showing promising trends that signal future growth for the world’s largest cryptocurrency. New BTC wallet addresses have steadily increased over the past week, reaching 352,124, the highest level since April, according to Glassnode chart data first shared on social media platform
Interestingly, the chart shows that the recent increase in new addresses contrasts with a significant decline in new address creation since November 2023. This new increase represents an influx of new users entering the cryptocurrency space. As more people adopt Bitcoin, demand will inevitably increase, which is a catalyst for a price surge.
Additionally, Martinez suggested that the increase in new addresses is due to the comeback of retail investors. While institutional investors often drive major market movements, retail investor interest is essential to Bitcoin’s mainstream adoption.
Sleeve #bitcoin Investors are coming back! New numbers $Bitcoin The number of addresses on the network has surged to 352,124, the highest level since April. pic.twitter.com/GFOHnsokz0
— Ali (@ali_charts) June 29, 2024
The main reason for the increase in new addresses can be their recent introduction 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 has the potential to expose a significant portion of its 100 million customers to digital assets.
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 over the past 30 days, and the bull market is struggling to break above $61,000. This decline can be attributed to selling 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 markets will return. It’s a question of when, not if. Now that the second half of the year is approaching, only time will tell how Bitcoin prices will unfold. Of course, new wallet addresses don’t directly affect the price, but they are a leading indicator that Bitcoin adoption is increasing.
This acceptance and demand, as well as the recent decline in the number of new Bitcoins entering the market, suggests that Bitcoin prices will rise in July.
Featured image from CNBC, chart from TradingView
Source: NewsBTC.com