As a wave of bearish trends continues to envelop the global cryptocurrency market, some assets are seeing significant growth. Bitcoin, the leading cryptocurrency, is at the forefront of this development.
Over the weekend, on-chain data revealed that the Bitcoin network garnered over 719,000 new wallet addresses in a single day. The last time that the Bitcoin network saw such an increase in a day was in 2017.
Source: IntoTheBlock
Why the Increase?
There are several reasons a blockchain can see massive onboarding of users in a single day. In the case of Bitcoin, a resurgence of attention on the largest cryptocurrency has likely occurred. The increase in user adoption shows the level of interest investors have in Bitcoin.
One key factor that may have contributed to the interest in Bitcoin is the lingering hope for the approval of a Bitcoin exchange-traded fund (ETF), a publicly traded asset designed to enable investors to gain exposure to the Bitcoin cryptocurrency.
While the asset is available in some parts of the world, countries like the United States are yet to give the green light for institutions to offer the asset. Experts believe that the approval of a Bitcoin ETF could potentially increase BTC’s price. Many comments suggest that the agency responsible for approving the asset, the U.S. Securities and Exchange Commission (SEC), will inevitably give a go-ahead for the offering of the spot Bitcoin ETF.
Notably, Bitcoin’s latest metric trails its performance from five years ago. On December 14, 2017, the number of active Bitcoin addresses rose to an all-time high (ATH) of 800,180. Bitcoin’s price attained an ATH of around $18,000 at the time.
BTC Price Below $30k
Despite the mass influx of users into the Bitcoin ecosystem, the asset’s price has proven to be rather sluggish. Since the start of the month, Bitcoin’s price has struggled around the $25,000 to $26,000 price mark.
According to the price-tracking website CoinStats, BTC traded at $25,170 at press time, representing a 14% decrease over the past month.
