June 11, the number of active Bitcoin (BTC) addresses hit 1,040,244. This is the highest number in two and a half years. Many analysts believe there may be a correlation between this metric and the market’s overall price.
Number of Active Bitcoin Addresses. Source: Glassnode.
Bloomberg bets on it
Bloomberg, in its latest crypto report stated that the number of active Bitcoin addresses is a historically significant bullish indicator:
“The highest level of active addresses in about two years favors a higher Bitcoin price, if history is a guide.”
Days With > 1,040,244 Bitcoin Active Addresses & Price. Source: Cointelegraph, Glassnode, Quandl.
Will history repeat itself?
If we examine historical data and pick out all dates, when there were at least 1,040,244 active Bitcoin addresses and take the average of the price, we get — $14,700. From this, we can speculate that there is some pent up momentum waiting for the opportunity to break out.
Bloomberg’s crypto report said that they expect the price of Bitcoin to approach 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 has broken down at some point.