As a seasoned crypto investor with a decade of experience under my belt, I find myself both excited and cautiously optimistic about the recent surge in Bitcoin’s daily active users approaching one million for the first time since 2019. The growing network activity, particularly the shift from large investors to retail participants, is indeed a promising sign for the market’s stability. However, as Anndy Lian rightly pointed out, it hasn’t yet translated into significant buying or selling pressure, which makes me wonder if these newbies are just window-shopping!
For the first time since 2019, Bitcoin is nearing a million daily active users, indicating an upward trend in its usage in 2024. Financial experts posit that this surge might propel Bitcoin’s value past the significant milestone of $100,000 per coin.
According to IntoTheBlock’s analysis from November 26th, Bitcoin’s on-chain activity has experienced its largest expansion since 2021, approaching the landmark of one million daily active wallets. This suggests a move towards wider retail involvement in the network.
Blockchain expert Anndy Lian suggests that the rise in daily active addresses could indicate a shift from big-time investors, or “whales,” to regular investors, or “retail participants.
He told CryptoMoon:
“This could be a positive sign for the market, as it may lead to more stable price movements. Retail investors tend to behave differently than whales, who can cause significant price swings with their large trades.”
Lian pointed out that the increasing count of operational Bitcoin addresses signifies a stronger and more vibrant network, suggesting promising prospects for long-term Bitcoin investors.
As a crypto investor, I find the escalating activity within the Bitcoin network to be an encouraging indication that we could be nearing the significant milestone of $100,000 per BTC. On November 22, it even came within $200 of this mark, making me even more optimistic about its future trajectory.
As an analyst, I observed a 6% drop in the value of Bitcoin to approximately $92,400 on November 26. This correction was primarily instigated by substantial selling from long-term Bitcoin holders, rather than outflows from U.S.-based spot Bitcoin exchange-traded funds (ETFs), according to Eric Balchunas’ analysis at Bloomberg.
New Bitcoin investors have yet to start buying BTC and exerting upward pressure
Despite the price dip, the increase in active addresses remains a bullish indicator. However, most new investors have yet to engage in significant buying or selling, Lian said.
Though more wallets are active, the amount of trades being made hasn’t seen a substantial rise,” he pointed out. “This implies that the increased on-chain activity has not yet led to noticeable buying or selling pressure.
On November 26th, the total trading volume for Bitcoin across all exchanges averaged about $817 million per day, which is lower compared to the $1.58 billion daily volume observed on November 14th. Interestingly, this decrease in trading volume coincides with a time when the price of Bitcoin peaked at $90,500, as indicated by Blockchain.com data.
As a crypto investor, I’m mindful that Ryan Lee, the chief analyst at Bitget Research, advises us to keep in mind the possibility of a broader market correction. This serves as a reminder for all of us to remain cautious and strategic with our investments.
“The market may be correcting, and investors’ profit-taking behavior may also be one of the reasons for the price drop. In addition, long leveraged positions above $3.40 billion face liquidation risks, which may further exacerbate price volatility.”
Can one million active users push Bitcoin price to $100,000 milestone?
An increase in active Bitcoin users might help drive Bitcoin’s price to a new record high of $100,000, a prediction made by certain financial experts, which could happen as early as November’s end.
According to IntoTheBlock’s recent post on November 25th, it was noted that more than 458,000 Bitcoin investors have purchased BTC at prices above $96,700. This could potentially provide substantial momentum for the next increase in price.
“458,000 addresses have amassed a staggering 344,000 BTC. A strong foundation to fuel a move beyond $100k.”
Last week saw a surge in on-chain activities, following Bitcoin ETFs recording an inflow of approximately $2.4 billion in their fourth strongest week of investments. In contrast, economic worries triggered a record-breaking outflow of over $2 billion from China ETFs – the worst weekly outflow ever recorded.
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2024-11-26 15:11