New Bitcoin Users Signal Retail Comeback

A recent increase in new Bitcoin addresses being established daily suggests that retail investors may be returning to the cryptocurrency market.

Market intelligence platform IntoTheBlock recently emphasized this trend in a post on X. The platform posits that the growing number of new addresses indicates an increasing interest from retail participants.

The number of daily new Bitcoin addresses has decreased since November 2023, a trend many analysts have interpreted as a bearish signal, suggesting a decrease in the number of new participants, particularly retail investors.

Nevertheless, the recent data indicates that the downward trend is reversing, as the number of new addresses has increased over the past few weeks.

New Bitcoin Addresses Reach Lowest Point in 2024

According to Glassnode, a crypto analysis platform, the number of new Bitcoin addresses in 2024 reached its lowest point of 203,536 on June 7.

However, this figure has increased since the beginning of August, oscillating between a low of 286,000 and a high of 337,000.

The rebound is perceived as a positive indicator, potentially establishing a more balanced market and a more robust foundation for future growth.

Bitcoin’s price has also demonstrated volatility amid these developments.

According to CoinGecko, the cryptocurrency significantly declined on August 5, plummeting to $49,221.

Nevertheless, Bitcoin regained footing and surpassed $62,000 by August 8.

Benjamin Cowen, the founder of ITC Crypto, conveyed apprehension regarding the possibility of a “death cross” in the market. This technical pattern is characterized by the 50-day simple moving average (SMA) falling below the 200-day SMA.

Cowen cautioned that Bitcoin’s longevity would be contingent upon its capacity to maintain the $62,000 level, whereas Timothy Peterson, another analyst, expressed a more optimistic perspective.

Peterson observed that Bitcoin has historically demonstrated resilience, climbing 62% of the time within 60 days of such an event since 2015, despite the impending death cross.

Spot Bitcoin ETFs Receive Inflows

On Thursday, a significant increase in positive flows, comprising $192.56 million, was observed in spot bitcoin exchange-traded funds (ETFs) in the United States.

BlackRock’s IBIT led the field with an impressive $157.6 million in inflows, according to data from SoSoValue.

WisdomTree’s BTCW was a surprising contender, attracting $118.52 million in inflows—its highest to date and more than ten times its previous record, set just a day earlier.

Fidelity’s FBTC, which recorded $65.25 million in net inflows, was followed by Ark Invest and 21Shares’ ARKB, which brought in $32.79 million.

The HODL of VanEck also contributed $3.38 million in net inflows.

Conversely, Grayscale’s recently converted GBTC fund experienced substantial net outflows totaling $182.94 million.

Additionally, $2.03 million was withdrawn from Hashdex’s spot bitcoin fund.

On Thursday, the trading volume for spot bitcoin ETFs exceeded $2 billion, a significant increase from the $1.79 billion recorded on Wednesday.

The 12 spot bitcoin ETFs have collectively amassed $17.43 billion in net inflows since their inception in January.

In the meantime, spot Ethereum ETFs in the United States experienced a net outflow of $2.87 million due to closely matched inflows and outflows yesterday.