The number of active Bitcoin addresses has reached a two-year high. What does this mean?

The number of active addresses on the Bitcoin network has reached a high of more than 1 million this week amid the so-called Bitcoin bull run. Data from analytics firm Glassnode shows that this is the highest number of active addresses recorded since January 2018.

Data is based on a 7-day moving average, which is the sum of active addresses over a 7-day period divided by the number of days.

Bitcoin recently broke through the $10,000 price level and managed to stay above that range, unlike its previous rapid decline. It even rose to over $12,000 but then briefly fell to $11,000.

The fact that Bitcoin has remained above this level for a long time has raised hopes among crypto enthusiasts for a rise to higher levels. There are even high hopes and confidence that Bitcoin will reach new all-time highs in 2020.

According to Glassnodes’ weekly report, despite short-term price volatility, sentiment on Bitcoin remains bullish in the long term.

The on-chain analysis company said its conclusion is based on promising fundamentals for Bitcoin, one of which is the significant growth in active addresses. Therefore, the new highs reached in the number of active addresses could be a confirmation of higher price levels.

Active addresses are addresses that have engaged in any form of transaction in the last 24 hours, which is also an indicator of the popularity of a cryptocurrency, meaning Bitcoin is more popular now than it has been since 2018 .

This is not surprising as Bitcoin has recently staged a major price rally, its biggest since the start of 2020.

Looking ahead, Bitcoin is expected to continue to rise as more investors continue to enter the space. Other fundamental data such as the number of addresses with 1 or more Bitcoin, the number of unique addresses, and several others also show significant growth, which further indicates that momentum is gathering.

While Bitcoin took a savage beating at $12,000 on Sunday, the move resulted in hundreds of millions of dollars worth of buy-side positions being liquidated, and of course millions of dollars of sell-side positions were also liquidated.

According to one cryptocurrency trader, a breakout and hold of Bitcoin above $11,500 could take the asset to $14,000.

Galaxy Digital CEO and former Goldman Sachs partner Mike Novogratz also said that Bitcoin will reach $14,000 in the coming months . The investment veteran cited the central bank's money printing, which is boosting the intrinsic value of scarce assets like Bitcoin.

This view was corroborated by Dan Tapiero, co-founder of International Bullion, who said that the decline in the dollar against the yen is driving demand for both Bitcoin and gold .

Bitcoin is currently trading at $11,436 , up 2.59% in the past 24 hours.

The original text comes from newsbtc and is translated by the BluemountainLabs team. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.