As Bitcoin attempts to build momentum for a new resurgence, the cryptocurrency’s network is witnessing new 4-week highs in unique addresses that hold assets.
Data provided by CoinMarketCap indicates that the total number of unique Bitcoin addresses that hold the asset in the network stands at 38,349,464 as of June 28th, the highest figure over the last four weeks (since May 29th). Over the same period, the least figure was on June 3rd at 37,946,036.
From the data, it can be observed that there is a correlation between the change in unique addresses and the price of Bitcoin. In recent weeks, the price of Bitcoin has corrected by almost 50% from the all-time high of $64,800 recorded in April. During the same period, the number of unique addresses holding the asset was lower.
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However, the number of unique addresses began rising after the cryptocurrency formed a solid base above the $30,000 mark showing signs of a resurgence.
Negative news around Bitcoin
At the same time, there has been increasing news around Bitcoin in recent weeks ranging from regulatory concerns to adoptions. Amid the attention on Bitcoin, the cryptocurrency has shown the intention to weather the storm, potentially attracting more investors. Furthermore, most negative news around the benchmark crypto appears to be cooling down.
Furthermore, the unique addresses activity might represent an influx of new users who are banking to buy Bitcoin with plans to profit in the future. Most specifically, the steady rise of unique addresses might be the result of accumulation by retail buyers who are projecting a near term rally.
On the other hand, it is worth noting that an increase in the number of unique addresses does not necessarily mean an influx of new investors into the Bitcoin network. Notably, a single investor can hold several Bitcoins in various addresses. Therefore, the rise in the number of unique addresses does not necessarily mean increased participation in the market.
[binance]
