Bitcoin has been on a roll lately, gaining almost 13% in the past week. Analysts are buzzing about a potential bull run, and one key indicator is pointing in that direction.
New Bitcoin Addresses: A Key Indicator
Crypto analyst Burak Kesmeci has identified a crucial factor in Bitcoin’s price movements: the number of new Bitcoin addresses created each day. He believes this metric is a strong signal of market sentiment.
When the number of new addresses climbs above 350,000, it suggests that more people are buying Bitcoin, which typically leads to price increases. On the other hand, a drop below this threshold could signal a price correction or even a bearish market.
Recent Rise in New Addresses
Recently, the number of new Bitcoin addresses has surged from below 200,000 to over 300,000. If this trend continues and surpasses the 350,000 mark, especially after the upcoming US Federal Reserve meeting, Kesmeci believes Bitcoin investors could be in for a “delicious” period.
Spot ETFs: A Double-Edged Sword
The launch of Bitcoin spot ETFs is a hot topic in the crypto world. While these ETFs are expected to attract institutional investors and boost Bitcoin’s price, Kesmeci raises a concern. He believes that a single ETF could hold Bitcoin for many investors who would have created individual addresses if they had invested directly. This could potentially hinder network growth, making it crucial for new retail investors to continue entering the market even with ETF-driven price increases.
Bitcoin’s Current Status
At the time of writing, Bitcoin is trading at $60,395, up 4.31% in the last day. However, daily trading volume has dipped by 9.35% to $30.5 billion.
