Bitcoin’s Decline in New Addresses
Analyst Ali has pointed out that the number of new addresses joining the Bitcoin network is on the decline. This trend indicates a possible bearish divergence between the BTC price and network growth. The daily total number of new addresses reflects both existing investors changing wallets and new holders entering the market.
This metric provides insights into cryptocurrency adoption. A high value suggests significant influx of new users, indicating a high level of adoption. A chart showing the trend in the number of new addresses for Bitcoin over the last few months has observed a surge in new users, coinciding with the latest rally in the asset’s price.
Impact on Rally’s Sustainability
The rise in user interest is essential for sustainable uptrends. However, a recent decline in the number of new addresses could signify a slowdown in user influx, which is not a positive development for the rally’s future. If new addresses don’t see an increase while the price rises, it may signal a temporary uplift.
BTC Price
Bitcoin plunged towards $35,000 but recovered above $36,000. The price chart can be found here.
Hot Take: Bitcoin’s Sustainability at Risk
On-chain data shows the number of new Bitcoin addresses is on the decline, a sign that could be bad for the sustainability of the ongoing BTC rally.
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