Rate of creation of new Bitcoin wallets falls to its lowest level since 2018 – DiarioBitcoin
By Hannah Perez
The number of new Bitcoin wallets plummeted after hitting a multi-year high in September 2023. Bearish signal for the market?
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- The number of new Bitcoin wallets has fallen more than 55% in recent months
- Number of new Bitcoin wallets hit lowest level since mid-2018
- Bearish signal? Last time it happened, Bitcoin recorded a price correction
- Bitcoin is around USD $66,800 with a modest drop on the day
It seems that the interest of new users in Bitcoin is declining after enthusiasm for cash exchange-traded funds (ETFs) faded and the bullish trend in the market took a pause.
At least that’s what the recent decline in the pace of new wallet creation on the network seems to suggest. Bitcoin.
Eight months ago, the weekly average number of new email addresses Bitcoin approached its highest levels from its all-time high value in December 2017, amid the advent of ETFs, developments like Ordinals and the excitement over the then-upcoming halving, the rewards-halving event that took place in April.
However, since then, the number of new addresses joining the network has plummeted by more than 55%, reaching its lowest levels since early 2018, as the team noted. IntoTheBlock. 
Specifically, the data of IntoTheBlock reveal that 276,000 new addresses have appeared Bitcoin on a 7-day average, a figure significantly lower than the number of new investors entering the cryptocurrency space in September, when the metric reached a level of over 640,000 new addresses.
“Someone should address the bear in the roomtation. The number of new addresses $BTC is reaching multi-year lows,” the team wrote in a tweet on Friday, noting that the level is the lowest since July 2018.
“Is this because ETFs act as representatives of new users? Are people going off the chain? Or are there simply a lack of new entrants to the market?“He added, as a reflection.
Bearish signal for Bitcoin?
The decline in the metric could suggest bearish sentiment in the market.
He indicator of “new directions” tracks the daily creation of new wallets on the network Bitcoin. High metrics typically mean an influx of new investors, although returning holders and those creating multiple privacy wallets also contribute to this number. A large number of new addresses generally indicates a bullish sentiment in the market.
The last time this indicator was this low was in mid-2018, when the cryptocurrency market turned bearish after Bitcoin saw historical highs close to USD $17,000 in December 2017.
The price trajectory of Bitcoin (BTC) has been zig-zagging since the leading cryptocurrency hit a new all-time price high above $73,000 in March. The top came a few days before the halving and amid fervent interest in ETFs. Bitcoin in the US, which also achieved record capital inflows that month.
However, since then, Bitcoin has remained primarily bearish and has been unable to revisit highs as ETF inflows slow from March records.
If history repeats itself, the drop in the number of new addresses Bitcoin It could indicate that the bull season is winding down, and that the bears are preparing to take the stage. However, numerous analysts agree that this is not the case and that the bullish cycle is just beginning, projecting price increases towards the end of 2024 or beginning of 2025.
Bitcoin is around $66,800 at press time, down 0.12% on the day and 9% below March’s all-time highs. It reflects a gain of almost 7% for the week.
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
