The data show 22,000 new entities created in a single day: an analyst suggests that the added volume will result in price increases
The „targeted advertising campaign“ in favor of crypto launched by the Chinese authorities could be the cause of the strong increase in new Bitcoin addresses (BTC).
In a series of tweets published on October 5, analyst and researcher Cole Garner highlighted a record-breaking increase in new BTC addresses last week.
Using data from the on-chain Glassnode monitoring resource, Garner found that about 22,000 new „entities“ appeared on Bitcoin Pro in a single day. The normal level is between 5,000 and 10,000 per day.
„Last week the new #Bitcoin addresses skyrocketed,“ he summarized in the comments.
Garner was looking into other recent reports from statistician Willy Woo. At the end of last month, Woo also commented on Glassnode’s data describing „a spike in activity from new entrants to BTC not yet visible in the price“.
The new addresses are an important indicator of volume, continued Garner, and the price action should follow the trend. „The volume precedes the price,“ he wrote.
Chinese media praise crypto performance
The source of the new addresses cannot be determined with certainty. However, Garner is focusing on China, as a widely reported media campaign in the last week of September defined the cryptocurrency as the highest performing asset in 2020.
„Last week, the Chinese government launched a coordinated advertising campaign to focus the interest of Chinese retail investors on cryptos. Yes, it’s really happening,“ he added in a subsequent tweet.
The initiative also caught the attention of Primitive Ventures‘ founding partner, Dovey Wan, who called the campaign launched by China’s state media „unique.
„It is rare to see such a coordinated initiative,“ she commented.
China is traditionally considered a hostile environment for consumers to interact with cryptocurrency. A ban implemented in 2017 is still in place, and transactions in the country are limited to over-the-counter, or OTC transactions, despite the openly continuing mining activities.
As reported by Cointelegraph, meanwhile, the bullish signals provided by Bitcoin’s on-chain parameters continue to multiply, and Woo is not alone in predicting a breakthrough in cryptocurrency from traditional assets, particularly gold, in the short term.