Bitcoin It may seem difficult to spark a major rally anytime soon, but investor interest in the flagship digital asset appears to be growing as the number of active addresses begins to rise again, indicating greater involvement from both old and new investors.

Bitcoin Active Addresses is regaining steam

In a positive and significant development, the number of active Bitcoin addresses has recovered sharply in light of the ongoing market fluctuations, highlighting renewed interest and network activity. The chief crypto analyst at Real Vision, Jamie Coutts shared the development on the X (formerly Twitter) platform Tuesday.

This revival in active BTC addresses comes after a prolonged downtrend, which lasted about eleven months, indicating a possible shift in market dynamics. After the rise, BTC’s price could be primed for an upward move as it usually correlates with potential price movements.

According to the expert, this indicator is still one of the most important metrics at the basic level in the chain, despite a decrease in the accuracy of forecasts over the past four years. Coutts further pointed out several factors that may have led to the decline, including significant ones Exchange traded fund (ETF) flows, increasing use of Layer 2 solutions such as Lightening for payments, and changes in on-chain behavior due to the influence of Non-Fungible Tokens (NFTs), ordinal numbersand others.

Bitcoin
Active BTC addresses rise after 11-month decline | Source: Jamie Coutts on X

He also highlighted his expectation of a 2x to 5x increase in Bitcoin’s value in the coming months, which the highest ever for the current cycle. While Coutts expects BTC to hit a new all-time high, he underlined that a corresponding breakout in active basechain addresses would certainly validate the network’s valuation. This is due to the fact that Bitcoin is a global monetary network, and its future largely depends on its ability to demonstrate organic network expansion and adoption across all metrics.

Overall, the end of this long-term decline in active addresses could mark a turning point for BTC as it continues to gain traction and provide investors with optimism in the face of market turbulence.

Is There a New Record for BTC on the Horizon?

Even BTC has been consolidating in recent months, several crypto analysts are confident that crypto assets will soon reach a new peak. Crypto Bullet, a market expert, has done that underlined Bitcoin’s potential to reach a new all-time high in the short term is creating optimism within the community.

The expert made the bold prediction based on the BTC Puell Multiple Indicator, which has reached the Green zone, suggesting the end of the bear markets. As a result, Crypto Bullet believes that the next or final stage for Bitcoin, possibly to a new peak, has begun.

Bitcoin
BTC is trading at $62,111 on the 1D chart | Source: BTCUSDT on Tradingview.com

Featured image from Unsplash, chart from Tradingview.com

By newadx4

Leave a Reply

Your email address will not be published. Required fields are marked *