The Bitcoin network continues to witness an eye-popping activity on its blockchain despite high volatility in Q2, after the asset sharply declined from its all-time high set in April 2021.
Data compiled by Blockchain Centre uncovered a stunning finding — as many as 488,206 new Bitcoin addresses were created daily in the first half of 2021, totaling 88,365,209 new addresses for the whole period.
“Privacy reasons, together with the ever-increasing adoption rate of decentralized finance, are the main forces behind the surprising number of new Bitcoin addresses,” says Tadas Maurukas, CEO of Blockchain Centre.
Blockchain Center researchers extracted the information for the report from Glassnode Studio, a gateway to on-chain data for the most popular blockchain platforms.
Diving into the analysis, January 2021 has the highest number of newly generated BTC addresses per day at 551,132. The total for the month reaches a never-before-seen height of 17,085,095 unique addresses.
As the data indicates, June 2021 sits on the other side of the spectrum, with the lowest number of newly created addresses for the period at 370,269 per day. Nonetheless, the total average volume of new addresses for the period under review is still substantial at 11,108,070 for the month.
A glance at the chart reveals that the volume of daily new addresses kept decreasing on a monthly basis. On average, daily new addresses decreased 7.49% per month in the first half of the year. The most significant drops were from April to May 2021, at -12.04%, and from May to June 2021, at -15.19%.
Even with the volume of new addresses slightly decreasing in the past months, millions of new addresses still confirm that the global adoption of digital currencies is at an all-time high.
Bitcoin Bulls Run Amok: Short Traders Hit with $90 Million Loss Amidst Unstoppable Surge
The relentless surge in Bitcoin’s prices has left short traders reeling as highly leveraged futures bets against the cryptocurrency incurred losses totaling $90 million on Tuesday alone.
This follows an additional $70 million in short liquidations on Monday, contributing to Bitcoin’s remarkable climb from $39,000 to $44,000 this week.
According to data from CoinGlass, most of these liquidations transpired on major crypto exchanges, including Binance, OKX, and Huobi.
The substantial liquidation figures have the potential to signal either a local top or bottom in a significant price movement, providing valuable insights for traders looking to strategically position themselves.
The surge in trading volumes, up by 25% in the past week, coupled with the growth in open interest from $17.2 billion to $20.2 billion since the beginning of December, underlines the increased market activity around Bitcoin.
Several factors are contributing to Bitcoin’s recent growth. Optimism is swirling around the potential approval of a spot exchange-traded fund (ETF) in the U.S., with traders factoring in anticipated rate cuts, buoying riskier assets like technology stocks and Bitcoin.
Additionally, the possibility of sovereign adoption is gaining traction as leaders in major economies express a Bitcoin-friendly stance.
Over the weekend, a notable group of traders committed to a $200 million BTC futures position, emphasizing the sustained demand for exposure to Bitcoin.
Amid continuous updates and changes in spot ETF applications, some industry observers foresee Bitcoin prices surpassing the $48,000 level in the coming weeks, further intensifying the cryptocurrency’s bullish momentum.
Bitcoin Surpasses $42,000 Mark, Ethereum Follows Suit, Triggering Crypto Rally
Bitcoin Breaks $40,000 Price Levels Amidst Optimism and Regulatory Developments
Bitcoin on Monday broke $40,000 resistance levels following a 2.9% surge in price to $40,867 per coin.
The world’s largest digital currency has now appreciated by 146% in 2023 as more institutional investors continue to increase their investments in the unregulated cryptocurrency space.
Investors are exhibiting growing confidence in the Federal Reserve’s apparent conclusion of rate hikes amid a cooling inflation backdrop.
This shift in sentiment has redirected attention to the anticipated extent of rate cuts in the coming year, prompting a rally across global markets.
The cryptocurrency industry is currently in anticipation as regulatory decisions, particularly regarding applications for the first US spot Bitcoin exchange-traded funds (ETFs), hang in the balance.
Bloomberg Intelligence anticipates the approval of a batch of these ETFs by the Securities & Exchange Commission (SEC) by January.
“Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024,” noted Tony Sycamore, a market analyst at IG Australia Pty.
Technical analysis points to $42,330 as the next significant level to monitor in Bitcoin’s upward trajectory.
Despite recent crackdowns in the industry, including legal actions against figures like Sam Bankman-Fried and Binance, Bitcoin has proven resilient.
Optimists argue that these regulatory measures, alongside the potential approval of ETFs, signify the maturation of the crypto industry and the prospect of a broader investor base.
According to Su Yen Chia, co-founder of the Asia Crypto Alliance, recent enforcement actions “have instilled confidence among investors,” noting that Bitcoin is aligning with momentum in traditional finance as expectations of Fed rate hikes fade.
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