It is not entirely surprising to see global interest in Bitcoin accelerate all of a sudden. Following the re-break of the $50,000 level, there are more new addresses than a few months ago. Moreover, the number of UTXOs in profit surpasses 95% again, indicating overall bullish sentiment.
Bitcoin New Addresses Spike
It is essential for any cryptocurrency – Bitcoin, Ethereum, or otherwise – to keep attracting newcomers. While it is tricky to measure such growth, the number of new addresses can offer some indication. As this number is now rising spectacularly, there is a four-month high for Bitcoin addresses. An intriguing development that is most likely tied to the recent BTC price action.
The metrics by Glassnode show there is a four-month high for new addresses on the Bitcoin blockchain. A welcome change, as this metric was dropping off significantly in the past few months. Even though BTC has had a stellar run, note everyone believed it would re-break $50,000 and then some, Lo and behold, one Bitcoin currently trades for $52,450, and its value is still climbing by the day.
A renewed price surge often triggers general market excitement. Unfortunately, it is also bad news for most altcoins, as they will see liquidity dry up by people chasing BTC-based profits. There will still be plenty of market volatility for speculators to benefit from in the hours and days to come. However, the rising number of new addresses shows people from outside the crypto industry might be making their move.
Unfortunately, no one can pinpoint why the new addresses metric is rising. Exchange deposit addresses will contribute to the overall rise in number. Additionally, users can generate unlimited amounts of Bitcoin addresses through their wallet software. It doesn’t mean there are thousands of new users all of a sudden, although there are likely many newcomers exploring the space. New addresses don’t mean addresses holding funds; thus, excitement may need to be tempered.
UTXOs In Profit Perk Up
Following the recent Bitcoin price increase – 28% in the past week – there are more UTXOs in profit again. A UTXO represents an unspent output valued at the last time it was moved on the network, tied to the price at the time. For those UTXos to be in profit, the current Bitcoin value needs to be higher than the last recorded transactions associated with the output. It seems many people previously bought near or above the current price level, which is rather interesting.
However, as the Bitcoin price keeps moving up, more people will be in profit. Currently, over 95% of UTXOs are in profit already, which is a significant improvement. That metric had dipped to 89% not that long ago. It will be impossible for 100% of UTXOs to achieve profit simultaneously, but 99% or better is certainly possible. An exciting future lies ahead for the world’s leading cryptocurrency, especially with the new addresses on the rise.