The latest data indicates that 22,000 new entities created in one day as one analyst suggests that the added volume will result in price gains. Possibly, China could be behind the huge spike in new Bitcoin (BTC) addresses as the authorities in the country launched a “targeted marketing campaign” favoring cryptocurrencies.
Coming in a series of tweets on October 5, Cole Garner, a market analyst, and market cyclist published a 2-year record increase in the new bitcoin addresses in the past week. While referring to data from on-chain monitoring resource Glassnode, Garner was quick to note that almost 22,000 new bitcoin entities appeared in a single day. Reliable data shows that the normal level is 5,000 to 10,000 every day.
He summarized in the comments:
“New #bitcoin addresses were absolutely off the charts last week.”
Garner was adding his voice to other recent analyses from statistician Willy Woo. In late September, Woo explained what he termed as:
“a spike in activity by new participants coming into BTC not yet reflected in the price.”
Garner believes that new addresses are an important volume indicator and price action is expected to follow as indicated historically by the Glassnode data. “Volume precedes price,” he wrote.
China’s Media Praises Cryptocurrency Performance
For now, the source of these new addresses cannot be determined with certainty, But, China forms Garner’s best bet. Analysts viewed it as a widely-reported media campaign in the final week of September termed crypto as the best-performing asset of 2021. He wrote in a further tweet:
“Last week the Chinese government began a coordinated marketing campaign to focus Chinese retail investor psyche on crypto. Yes, this is really happening.”
This move caught the attention of Dovey Wan, Primitive founding partner. He described the Chinese state media campaign as ‘curious’. At the time, she commented:
“It’s rare for such a coordinated effort.”
Traditionally, China has been seen as a hostile environment with regards to consumers’ ability to engage with crypto. A ban from 2017 still holds in place with transactions confined to over-the-counter (OTC) trades despite mining activities openly continuing.
According to previous reports, in the meantime, the bullish on-chain metrics for Bitcoin keeps on multiplying. Woo is among those who are calling for a breakout independent of the traditional markets, especially gold, soon.