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The growing network activity is a promising sign for Bitcoin’s battle toward the historic $100,000 mark, which was just $200 away on Nov. 22.
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Bitcoin is approaching one million daily active users for the first time since 2019, reflecting growing adoption in 2024. Analysts believe this increase could help push Bitcoin’s price beyond the historic $100,000 mark.
On Nov. 26, blockchain analytics platform IntoTheBlock noted that Bitcoin’s onchain activity has seen its most significant growth since 2021. The network is nearing the milestone of one million daily active addresses, which marks a shift toward broader retail adoption.
Bitcoin: daily active addresses. Source: IntoTheBlock
The increase in daily active addresses signals a transition from large investors, known as whales, to retail participants, according to blockchain expert Anndy Lian.
He told Cointelegraph:
“This could be a positive sign for the market, as it may lead to more stable price movements. Retail investors tend to behave differently than whales, who can cause significant price swings with their large trades.”
Lian added that the growing number of active addresses indicates a healthier and more robust network, which bodes well for long-term Bitcoin investors.
The growing network activity is a promising sign for Bitcoin’s (BTC) battle toward the historic $100,000 mark, which it came within $200 of on Nov. 22.
BTC/USD, 1-month chart. Source: Cointelegraph
BTC saw a 6% correction to $92,400 on Nov. 26, mainly driven by large-scale selling from long-term BTC holders, not outflows from United States-based spot Bitcoin exchange-traded funds (ETFs), according to Bloomberg analyst Eric Balchunas.
Related: Ether price faces correction before rally to $20K in 2025 — Analysts
New Bitcoin investors have yet to start buying BTC and exerting upward pressure
Despite the price dip, the increase in active addresses remains a bullish indicator. However, most new investors have yet to engage in significant buying or selling, Lian said.
“Trading volume has remained relatively stable despite the increase in active addresses,” he explained. “This suggests that the onchain activity hasn’t yet translated into significant buying or selling pressure.”
BTC average exchange trading volume. Source: Blockchain.com
Bitcoin’s total trading volume across all exchanges stood at a daily average of $817 million on Nov. 26, compared to over $1.58 billion on Nov. 14, when Bitcoin price breached $90,500, Blockchain.com data shows.
However, investors should consider the potential of a wider market correction, according to Ryan Lee, chief analyst at Bitget Research:
“The market may be correcting, and investors’ profit-taking behavior may also be one of the reasons for the price drop. In addition, long leveraged positions above $3.40 billion face liquidation risks, which may further exacerbate price volatility.”
Related: US Bitcoin reserve during Trump presidency could pump BTC to $1M
Can one million active users push Bitcoin price to $100,000 milestone?
The resurgence in Bitcoin’s active users could contribute to Bitcoin’s rally to the $100,000 record high, which could potentially occur before the end of November, according to some analysts.
In another bullish sign, over 458,000 Bitcoin investors have acquired BTC above $96,700, which could offer significant momentum for the next leg up, wrote IntoTheBlock in a Nov. 25 X post:
“458,000 addresses have amassed a staggering 344,000 BTC. A strong foundation to fuel a move beyond $100k.”
In/out of money around price. Source: IntoTheBlock
The growing onchain activity comes a week after Bitcoin ETFs logged $2.4 billion worth of inflows in their fourth-best week of investments, while economic concerns led to over $2 billion worth of outflows for China ETFs, marking the worst week of outflows in history.
Magazine: Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23
This article first appeared at Cointelegraph.com News
