On June 11, the number of active Bitcoin addresses (BTC) reached 1,040,244. This is the highest number in two and a half years. Many analysts believe that there may be a correlation between this metric and the overall market price.
Number of active Bitcoin addresses. Source: Glassnode
Bloomberg relies on it
Bloomberg, in its latest report on cryptocurrencies stated that the number of active Bitcoin addresses is a historically significant bullic indicator:
“The highest number of active addresses in about two years favors a higher Bitcoin price if history is a guide.”
Days with more than 1,040,244 active Bitcoin addresses and prices. Source: Cointelegraph, Glassnode, Quandl.
Will history repeat itself?
If we detail the historical data and select all dates on which at least 1,040,244 Bitcoin addresses were active and determine the average price, we get the price of USD 14,700. From this we can speculate that an accumulated dynamic is waiting for an opportunity for the price increase.
The Bloomberg cryptocurrency report says Bitcoin price will near the all-time high of $ 20,000 or even reach $ 28,000 in 2020. Obviously there is no way of knowing if history will repeat itself or if this correlation exists it has broken at some point.