Coin Metric Exec believes that Bitcoin is entering new grounds when it comes to user adoption. The rise in the price value of bitcoin, especially in the last few months has seen more and more persons adopt the premium cryptocurrency. The COVID-19 induced urge has seen more people buy into bitcoin as a safe asset.
According to data from Coin Metrics, the number of bitcoin addresses with a minimum of $10 of bitcoin has passed the 16 million mark. This is a 14% increase from the 14.5 million registered in 2018. Back then, the increase in user adoption was down to Bitcoin’s climb to $20,000.
The previous bull run in late 2017 to early 2018 brought an increase in accounts with small balances. History is repeating itself in the past few months as more addresses have at least $10 in them.
The data from Coin Metrics shows that more people are adopting the cryptocurrency, thus leading to a new bitcoin adoption phase. As Lucas Nuzzi, an Exec at Coin Metric, suggests, “This adoption is one never seen before.” Mind you, it is worth pointing out that an increase in addresses doesn’t necessarily mean an increase in the number of bitcoin users. This is because one individual can hold several addresses.
Since the last significant price drop in March 2020, Bitcoin adoption has increased by 27%. In the previous 5 months, Bitcoin’s price has gone up by 200%, with a yearly increase of 64%
Experts suggest that Bitcoin could reach an all-time high at the end of the year. In addition, the current price movements could see an increase because people won’t want to miss out on any potential gains in the future.
Bitcoin may find it difficult to go past $12,000 on a short term basis if traders decide to liquidate their assets rather than hold. It would seem more persons are liquidating their holdings. According to data from Chainalysis, around 230,000 BTC amounting to $2.6 (billion as at the time of filing this report) were sent to exchanges in the past few days. It is unknown if the majority of these coins were liquidated or held.
With Bitcoin trading near $11,700, the analyst believes it is only a matter of time before it passes the $12,000 mark.