Bitcoin: Why a hike in network growth may be good news
- The number of non-zero addresses has steadily risen in 2023
- Market mood remains bullish too
Appetite for Bitcoin [BTC], the world’s largest cryptocurrency, is showing no signs of slowing down. This, despite BTC being around for over 15 years now.
Network growth soars
According to Ali Martinez, more than 700,000 new addresses were created on the network in a single day over the weekend.
The hike in network growth came despite the price remaining largely stable. This means new entrants were driven by Bitcoin’s long-term potential. They were not encouraged by the short-term frenzy that typically drives people to the world of cryptos.
Martinez called the event an “important milestone.” This, because Bitcoin’s network has historically been a proven indicator of long-term growth.
Whales give a signal
Bitcoin’s resilience in the bear market and its clean image amidst an increasingly hawkish U.S. regulatory climate has attracted investors from the traditional market.
For example, according to data examined by AMBCrypto from Glassnode, the number of non-zero addresses on the network has steadily risen in 2023. At the time of writing, the count was 48.75 million – An addition of five million on a year-to-date (YTD) basis.
Whale investors have also shown significant interest lately. After a rather quiet Q3, addresses with a balance of more than 1,000 BTC coins have risen since October. Strong buying activity is generally viewed with optimism in crypto-circles.
Another optimistic indicator is that investors in this group are not adding to the selling pressure. According to CryptoQuant, much of this pressure was exerted by the entities holding between 10-100 coins.
As players with most of the supply were quiet, fears of an immediate correction were put aside.
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Market remains upbeat
Bitcoin continued to trade around the $35,000-range over the weekend. At press time, it was exchanging hands at $34,887. Only marginal gains were seen over the last 24 hours.
The market’s mood continues to be bullish too. The prospect of a spot Bitcoin ETF being approved is keeping the market upbeat.
Bitcoin Fear and Greed Index is 74. Greed
Current price: $35,049 pic.twitter.com/dYjnBbtHzv
— Bitcoin Fear and Greed Index (@BitcoinFear) November 6, 2023