Bitcoin Network Sees 700,000 Addresses Join in One Day: What Does It Mean for BTC Price?

• BTC has surged to a level it hasn’t reached since May 2022, breaking above the $35,000 level. However, the increased optimism is not limited to price; it’s also evident in Bitcoin’s network activity.
• Currently, the next major resistance level for BTC is around $38,000, indicating a price region where sellers could gain momentum.
• The rally occurred due to news that BlackRock’s spot Bitcoin ETFs, known as IBTC, were listed on the Depository Trust & Clearing Corporation (DTCC) website.

More than 700,000 addresses joining the Bitcoin network have captured the attention of the crypto community: Why is the participation of these addresses significant, and could it be crucial for the price?

Hundreds of Thousands of Addresses Join the Bitcoin Network

In recent weeks, Bitcoin (BTC) has experienced an impressive surge in price. This substantial increase can be attributed to renewed investor optimism, largely fueled by the belief that U.S. regulators might finally approve the first spot exchange-traded fund (ETF) for cryptocurrencies later this year.

As a result of this newfound enthusiasm, BTC has surged above the $35,000 level, a level not seen since May 2022. However, the increased optimism is not limited to price; it’s also evident in Bitcoin’s network activity. As noted by crypto analyst Ali Martinez, over 700,000 new addresses were added on November 4th. Martinez stated:

“The growth of the BTC network is the best price predictor, so this is a significant milestone!”

At the time of writing, Bitcoin was trading at around $35,180, and it had changed very little in the last 24 hours. The leading crypto asset had gained nearly 1% over the week and more than 26% over the last month, adding over $140 billion to its market value during this rally.

Currently, the next major resistance level for BTC is around $38,000, indicating a price region where sellers could gain momentum. However, crypto analyst Michael van de Poppe said last week that he expects BTC to surpass this obstacle and potentially reach $50,000 before the 2024 halving event.

Limited Impact of Spot Bitcoin ETF Approval on Price

As mentioned earlier, the rise in BTC and the broader crypto market was due to growing belief that the U.S. Securities and Exchange Commission (SEC) would approve a spot Bitcoin ETF. More specifically, the rally happened following news that BlackRock’s spot Bitcoin ETFs, known as IBTC, were listed on the Depository Trust & Clearing Corporation (DTCC) website.

A trader with the pseudonym TheFlowHorse said that if regulators do approve ETFs, the crypto market could expect a “similar, if not bigger, move.” However, the analyst noted that any significant rally following approval might be followed by a medium-term price pullback, as many investors would likely attempt to profit from the news.