It has been observed that more people are getting into Bitcoin, even though its price has been dropping recently. For long-term investors, this uptick in new users can be seen as a positive sign of continued interest and confidence in the Bitcoin network.
According to Glassnode, an on-chain analytics firm, on September 9, 2023, a staggering 717,331 new Bitcoin ($BTC) addresses were created, marking the highest number in five years. This surge in new addresses is a clear sign of increasing interest and participation in the Bitcoin ecosystem. This was also observed and tweeted by a popular crypto analyst, Ali, on X.
To put it in perspective, the last time we witnessed such a substantial surge was on December 14, 2017, when 800,180 new BTC addresses were generated, coinciding with a period of intense Bitcoin enthusiasm and price growth. This recent event highlights the ongoing popularity and adoption of Bitcoin in the world of digital finance, suggesting a potentially significant milestone in its history.
This surge in addresses might be due to the recent G20 leaders who have united to support the quick implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). CARF, introduced by the OECD in October 2022, aims to enhance transparency in crypto transactions globally, with exchanges starting in 2027. This framework will enable automatic information sharing among countries, including transactions on unregulated crypto platforms.
Earlier on September 8, 2023, as Bitcoin was hovering near $26,000, a significant number of new Bitcoin addresses were observed, which was about near to 527,000, the highest this year. As of now, the Bitcoin daily chart suggests a potential “death cross” forming. If the price falls below $25,200, it could indicate a significant downward correction for Bitcoin.
Recently, in a report by Todayq News on August 13, 2023, it was observed that around 50 million addresses hold Bitcoin, indicating strong interest from whales and retail investors, as the G20 is in the process of forming a new regulatory framework in the next five to six months. We may see these 50 million addresses convert to 75 million in a very short time once it is done.