Bitcoin is approaching 1 million daily active users for the first time since 2019, reflecting growing adoption in 2024. Analysts say this increase may help push Bitcoin’s price beyond the $100,000 mark.
On Nov. 26, blockchain analytics platform IntoTheBlock noted that Bitcoin’s onchain activity has seen its most significant growth since 2021. Nearing 1 million daily active addresses shows a shift toward broader retail adoption.
The increase in daily active addresses signals a transition from large investors, known as whales, to retail participants, according to blockchain expert Anndy Lian.
He told Cointelegraph:
“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.
The growing network activity is a promising sign for Bitcoin’s BTC
$92,144 battle toward the historic $100,000 mark, which it came within $200 of on Nov. 22.
BTC saw a 6% correction to $92,400 on Nov. 26, mainly driven by large-scale selling from long-term BTC holders, not outflows from United States-based spot Bitcoin exchange-traded funds (ETFs), according to Bloomberg analyst Eric Balchunas.
New Bitcoin investors have yet to start buying BTC and exerting upward pressure
Despite the price dip, the increase in active addresses remains a bullish indicator. Still, 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,” he said. “This suggests that the onchain activity hasn’t yet translated into significant buying or selling pressure.”
Bitcoin’s total trading volume across all exchanges stood at a daily average of $817 million on Nov. 26, compared to over $1.58 billion on Nov. 14, when Bitcoin price breached $90,500, Blockchain.com data shows.
Still, investors should consider the potential of a wider 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, according to some analysts.
In another bullish sign, over 458,000 Bitcoin investors have acquired BTC above $96,700, which may offer significant momentum for the next leg up, wrote IntoTheBlock in a Nov. 25 X post:
“458,000 addresses have amassed a staggering 344,000 BTC. A strong foundation to fuel a move beyond $100k.”
Bitcoin’s price and network activity have seen significant growth since Donald Trump’s victory in the US presidential election on Nov. 5, according to Isaac Joshua, CEO at Gems Blockchain Launchpad, who added:
“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.”
The growing onchain activity comes a week after Bitcoin ETFs logged $2.4 billion worth of inflows in their fourth-best week of investments, while economic concerns led to over $2 billion worth of outflows for China ETFs, marking the worst week of outflows in history.
Source: https://cointelegraph.com/news/bitcoin-nears-1m-daily-addresses-price-chases-100k
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.