Bitcoin is approaching the milestone of one million daily active users for the first time since 2019, reflecting increased adoption in 2024. Analysts believe this surge could help push Bitcoin's price past the historic $100,000 mark.
On November 26, the blockchain analytics platform IntoTheBlock recorded that Bitcoin's on-chain activity saw the most significant growth since 2021. The network is approaching one million daily active addresses, marking a shift towards broader acceptance from the retail market.
Bitcoin: daily active addresses. Source: IntoTheBlock
According to blockchain expert Anndy Lian, the increase in daily active addresses indicates a shift from large investors, often known as whales, to retail participants.
He told TinTucBitcoin:
"This could be a positive sign for the market, as it may lead to more stable price volatility. Retail investors tend to behave differently than whales, who can cause significant price fluctuations with their large trades."
Lian added that the increasing number of active addresses indicates a healthier and stronger network, which is good for long-term Bitcoin investors.
Increasing network activity is a promising sign for Bitcoin's (BTC) quest to reach the historic $100,000 mark, as it was just $200 away on November 22.
BTC/USD, 1-month chart. Source: TinTucBitcoin
BTC experienced a 6% correction down to $92,400 on November 26, mainly due to long-term BTC holders selling on a large scale, not from Bitcoin spot ETFs in the U.S., according to Bloomberg analyst Eric Balchunas.
New investors in Bitcoin have yet to start buying BTC and create upward pressure.
Despite the price drop, the increase in active addresses remains a positive indicator. However, most new investors have not yet actively engaged in buying or selling, Lian said.
"Transaction volumes remain relatively stable despite an increase in active addresses," he explains. "This indicates that on-chain activity has not yet translated into significant buying or selling pressure."
Average trading volume on BTC exchange. Source: Blockchain.com
The total trading volume of Bitcoin across all exchanges averaged $817 million daily on November 26, compared to over $1.58 billion on November 14, when Bitcoin's price surpassed $90,500, according to data from Blockchain.com.
However, investors need to consider the possibility of a broader market correction, according to Ryan Lee, chief analyst at Bitget Research:
"The market may be adjusting, and investors' profit-taking behavior could also be one of the reasons for the price drop. Additionally, long positions worth over $3.40 billion are at risk of liquidation, which could exacerbate price volatility."
Could one million active users push Bitcoin's price to $100,000?
The revival of active Bitcoin users could contribute to Bitcoin's price surge to the record $100,000 mark, which could happen before the end of November, according to some analysts.
In another bullish sign, over 458,000 Bitcoin investors bought BTC at prices above $96,700, which could provide important momentum for the next upward move, IntoTheBlock wrote in a post on X on November 25:
"458,000 addresses have accumulated an incredible volume of 344,000 BTC. A solid foundation to drive a breakthrough past $100,000."
Money in/out around price levels. Source: IntoTheBlock
The increasing on-chain activity comes a week after Bitcoin ETFs recorded $2.4 billion inflows in their fourth-best investment week, while economic concerns led to over $2 billion being withdrawn from Chinese ETFs, marking the worst withdrawal week in history.
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