Bitcoin might be having trouble initiating a major rally soon, however, investors’ interest in the flagship digital asset appears to be growing as the number of active addresses has begun to rise once again, indicating heightened engagement from both old and new investors.

Bitcoin Active Addresses Regains Steam

In a positive and significant development, the number of active Bitcoin addresses has rebounded sharply in light of ongoing market fluctuation, highlighting renewed interest and network activity. The chief crypto analyst at Real Vision, Jamie Coutts shared the development on the X (formerly Twitter) platform on Tuesday.

This resurgence in active BTC addresses comes after a lengthy downtrend, which lasted for about 11 months, signaling a possible shift in market dynamics. Following the surge, BTC’s price could be poised for an upward movement since it usually correlates with potential price movements. 

According to the expert, this indicator is still one of the most important base-level on-chain metrics, despite a decline in forecast accuracy during the last four years. Coutts further pointed out several factors that might have triggered the drop such as significant Exchange-Traded Fund (ETF) flows, rising usage of Layer 2 solutions like Lightening for payments, and modification of on-chain behavior due to the influence of Non-Fungible Tokens (NFTs), Ordinals, and others.

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Author: Godspower Owie