Update Nov. 26, 12:32 pm UTC: This article has been updated to include quotes from Isaac Joshua.
Growing Adoption in 2024 Drives Bitcoin’s Price Towards $100,000 Mark
Bitcoin is on the cusp of reaching a significant milestone with over 1 million daily active users for the first time since 2019. According to blockchain analytics platform IntoTheBlock, Bitcoin’s on-chain activity has seen its most substantial growth since 2021. This surge in daily active addresses indicates a shift towards broader retail adoption.
Daily Active Addresses
Bitcoin: Daily Active Addresses
As shown by the chart above, Bitcoin’s daily active addresses have been steadily increasing since 2021. This growth signals a transition from large investors, known as whales, to retail participants. According to blockchain expert Anndy Lian:
"This could be a positive sign for the market, as it may lead to more stable price movements. Retail investors tend to behave differently than whales, who can cause significant price swings with their large trades."
Lian added that the growing number of active addresses indicates a healthier and more robust network, which bodes well for long-term Bitcoin investors.
Growing Network Activity: A Bullish Sign
The increasing on-chain activity is a promising sign for Bitcoin’s battle towards the historic $100,000 mark. On November 22, BTC came within $200 of this milestone but saw a 6% correction to $92,400 on November 26. According to Bloomberg analyst Eric Balchunas:
"The price dip was mainly driven by large-scale selling from long-term BTCholders, not outflows from United States-based spot Bitcoin exchange-traded funds (ETFs)."
Despite the price drop, the increase in active addresses remains a bullish indicator. However, most new investors have yet to engage in significant buying or selling, Lian said:
"Trading volume has remained relatively stable despite the increase in active addresses. This suggests that the on-chain activity hasn’t yet translated into significant buying or selling pressure."
Total Trading Volume
Bitcoin Average Exchange Trading Volume
As shown by Blockchain.com data, Bitcoin’s total trading volume across all exchanges stood at a daily average of $817 million on November 26. This is lower than the over $1.58 billion recorded on November 14 when Bitcoin price breached $90,500.
Investor Sentiment and Market Correction
According to Ryan Lee, chief analyst at Bitget Research:
"The market may be correcting, and investors’ profit-taking behavior may also be one of the reasons for the price drop. In addition, long leveraged positions above $3.40 billion face liquidation risks, which may further exacerbate price volatility."
Can 1 Million Active Users Push Bitcoin Price to $100,000 Milestone?
The resurgence in Bitcoin’s active users may contribute to Bitcoin’s rally to the $100,000 record high, which could potentially occur before the end of November. Some analysts believe that if this momentum continues, Bitcoin could reach the historic mark.
Strong Foundation for Next Leg Up
According to IntoTheBlock:
"Over 458,000 Bitcoin investors have acquired BTC above $96,700, which may offer significant momentum for the next leg up."
This foundation is a strong indication of the growing adoption and interest in Bitcoin. As Lian noted:
"A healthy and robust network is essential for long-term success, and this growth in active addresses suggests that we are moving in the right direction."
Growing Adoption and Inflows
The growing on-chain activity comes at a time when economic concerns have led to over $2 billion worth of outflows for China ETFs. However, Bitcoin ETFs logged $2.4 billion worth of inflows in their fourth-best week of investments.
As Isaac Joshua, CEO at Gems Blockchain Launchpad, said:
"If this momentum continues, Bitcoin could be on track for $100,000. However, it will require significant inflows — around $500 billion more—into the market. This is achievable, given current daily trading volumes and growing adoption of Bitcoin as a hedge against inflation and a weakening dollar."
Conclusion
The increase in Bitcoin’s active users is a promising sign for the future of cryptocurrency. As Lian noted:
"A healthier and more robust network is essential for long-term success, and this growth in active addresses suggests that we are moving in the right direction."
With over 1 million daily active users and growing adoption, Bitcoin is on track to reach new heights. The question remains whether it can sustain its momentum and reach the historic $100,000 mark.
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