Bitcoin Onboards 700K New Users in One Day, Is Price Ready to Soar

The Bitcoin (BTC) network welcomed 700,000 new addresses created in one day, complimenting expectations for the next parabolic surge.

Top market analyst Ali Martinez teased this historic milestone as new addresses came alive on Bitcoin over the weekend. According to the analyst, this milestone is worth keeping an eye on as crucial records on the BTC network form what he termed “the best price predictors.”

#Bitcoin | More than 700,000 new #BTC addresses created yesterday alone. This is an important milestone, as #BTC network growth is the best price predictors! pic.twitter.com/BYQsh2l4OI

— Ali (@ali_charts) November 5, 2023

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Bitcoin’s Growing Address Count: Key Implications

Based on the Glassnode chart shared by Ali Martinez, both Bitcoin’s price and new addresses have charted an uptrend but in a unique way from August 8 to date. Despite the differences in their growth pathway, a subtle correlation is visible.

While new addresses recorded a sharp spike from around 380,000 on October 22 to around 560,000 around October 25, Bitcoin price recorded a similarly sharp surge moving from $30,000 on October 22 to $34,500 on October 25. The current record in address count as shared is exactly 705,081 addresses, coinciding with a price mark of $35,070.05.

While the data failed to unveil whether these new addresses made some acquisitions, it reveals the optimism brewing in the market at this time. With new entrants, the chances these new holders will join their older counterparts in acquiring some fraction of a BTC remains high. 

Such acquisitions, no matter how little, might go a long way to bolstering the price of Bitcoin. Riding on the demand-supply dynamics, more demand through accumulations and declining circulating supply forms the perfect recipe to drive prices higher. While top Wall Street firms like MicroStrategy Incorporated are championing this accumulation drive, the 29.39% surge in Bitcoin’s trading volume to $12,879,018,192 also underscores the role of retail investors.

Bitcoin Sentiment Remains High

Bitcoin remains the key driver of the broader crypto market, with its dominance standing at 51.8%. Its price is up 0.35% to $35,231.27 as it wriggles off a volatile weekend. The top coin’s market capitalization is valued at $688,222,456,754, as many market analysts project a more visible upside for the asset moving forward.

The price projection, which ranges from $56,000 from Matrixport to over $500,000 by Anthony Scaramucci, reveals the hidden potential in Bitcoin that is visible to many. Two key events that might accelerate achieving this historic price target include the potential approval of Bitcoin spot ETF and the upcoming halving.