Over the past few weeks, Bitcoin’s price move has been lukewarm and, at best, dues to a confluence of the fundamental trends.
The said cryptocurrency has dropped to a handful of a percent from the past week and not lower than 20% from its summer rise of $12,500.
Notwithstanding the apparent loss of the bullish momentum in the markets, the Bitcoin network’s essentials have been more vital than ever.
Data specifies that the number of new BTC addresses lately “shot of the charts.”
New Bitcoin addresses burst more significant regardless of BTC price stagnation.
The number of new Bitcoin addresses in the movement took a substantial spike in the previous week. The metric is seemingly set a new all-time high, with the last three days from last week recorded the creation of more than 20,000 new addresses.
Cole Garner, an on-chain Bitcoin analyst, has tried to break down what this means to the market.
Firstly, Garner has asserted that the bottom line is that network activity and volume leads to price action. That is to say, this arrival of new addresses could be a long-term sign of strength.
He also mentioned that the boost in addresses likely had something to do with China endorsing Bitcoin, Ethereum, and DeFi in a TV segment broadcast to dozens of millions of people.
Another theory mentioned is that BitMEX getting charged tempted tens of thousands of users to withdraw their capital, resulting in this network volume uptick.
Garner has stated on the importance of the data once again:
Other on-chain trends have agreed.
Willy Woo, a conspicuous on-chain analyst, has reverberated that Bitcoin’s on-chain basics remain strong, notwithstanding warm price action.
He has lately noted that there is “undeniable” purchasing burden from long-term HODLers, as showed by on-chain trends: