Despite the lackluster performance over the past few months, Bitcoin investors have been digging deeper into the digital asset. This is evidenced by the steady increase in wallet activity that has been seen during this time.
Bitcoin wallet activity hits 5-month high
In a post on Tuesday, on-chain data aggregator Santiment revealed that there has been a significant increase in Bitcoin wallet activity despite the downward trend in the price of BTC. While the market has fluctuated heavily due to regulatory uncertainties, Bitcoin investors seem to have held their own, especially when it comes to new wallet activity.
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Santiment reports show fluctuations in this metric over the months. The one thing that was consistent, however, was the tendency to pop back up even after significant immersion. In September alone, the metric moved from a low of around 860,000 to over 1.1 million unique daily active Bitcoin addresses.
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Unique Daily Addresses Hit a 5-Month High | Source: Santiment on X
Interestingly, this number is the highest this metric has been since April, proving that the downward trend in the price of BTC has not served as a deterrent for Bitcoin investors. Rather, it looks like investors are using the current low prices as a way to increase their footprint.
The surge could also be explained by the euphoria fueled by asset manager Franklin Templeton’s filing for a spot bitcoin ETF. While the hype surrounding the filing was short-lived, it sparked a brief spike in the digital asset’s price and likely helped the wallet’s rising activity rate as investors rushed to take advantage of the surge.
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Will BTC price follow wallet activity?
Even as wallet activity rises, the price of BTC is still hovering below $26,000. This might suggest that this metric doesn’t really have much of an effect on the price of Bitcoin. Rather, it just points out that investors should not slow down the use of the network despite the low prices.
Bitcoin BTC Price Chart from Tradingview.com (Wallets)
BTC price recovers above $26,000 | Source: BTCUSD on Tradingview.com
Currently, investors are still eagerly awaiting the decision on many spot BTC ETFs filed by fund managers. The outcome of these filings, whether rejected or accepted, will likely be a determining factor in the future price of Bitcoin.
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At the moment, no big moves can be expected for the digital asset, especially considering the fact that it is still trading below its 50-day and 100-day moving averages. Rising resistance between $26,000 and $27,000 suggests that Bitcoin could continue to trade sideways for much of September.
At the time of writing, Bitcoin is treacherously holding above $26,000 with meager gains of 0.64% over the past day.