Bitcoin wallet activity at 5-month high, will price follow?
Despite the less-than-impressive performance over the last few months, Bitcoin investors are still digging their heels deeper into the digital asset. This is evidenced by the continuous rise in wallet activity that has been recorded during this time.
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Bitcoin wallet activity at 5-month high, will price follow? Bitcoin Wallet Activity Hits Highest In 5 Months
Bitcoin wallet activity at 5-month high, will price follow? According to a recent post by Santiment, a data aggregator, there has been an increase in Bitcoin wallet activity despite the recent downtrend in BTC price. Despite regulatory uncertainties causing market fluctuations, Bitcoin investors have remained steadfast, especially in terms of new wallet address activity. The Santiment reports indicate fluctuations in this metric over the months, but it consistently bounces back even after significant dips. In September alone, the metric has risen from a low of approximately 860,000 to over 1.1 million unique daily active Bitcoin addresses.
The recent increase in wallet activity rate for Bitcoin is noteworthy, as it is the highest recorded since April. Despite the downward trend in BTC price, investors seem to be taking advantage of the lower prices to expand their holdings. This rise in activity can also be attributed to the excitement generated by the filing of a Spot Bitcoin ETF by asset manager Franklin Templeton, which briefly boosted the digital asset's price and likely contributed to the surge in wallet activity rate.
Will BTC Price Follow Wallet Activity?
Despite an increase in wallet activity, the price of BTC remains below $26,000, indicating that this particular metric may not have a significant impact on the value of Bitcoin. However, it does suggest that investors are continuing to use the network despite the current low prices.
Investors are currently waiting for a decision on the Spot BTC ETFs filed by fund managers. The outcome of these filings, whether accepted or rejected, could have a significant impact on the future price of Bitcoin. However, there are no major price movements expected for the digital asset as it is still trading below its 50-day and 100-day moving averages. Bitcoin may continue to trade sideways for the majority of September due to mounting resistance between $26,000-$27,000. As of now, Bitcoin is holding above $26,000 with a modest gain of 0.64% in the last 24 hours.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.