Bitcoin’s on-chain metrics are showing remarkable strength this week, with network activity reaching new yearly highs despite the recent price correction below $105,000. This surge in blockchain activity signals growing adoption and could indicate a potential trend reversal ahead.
Record-Breaking Network Growth
According to data from Santiment, Bitcoin’s network witnessed unprecedented growth with over 556,883 new wallet addresses created on May 29, marking the highest daily increase since December 2023. This development coincides with Bitcoin’s growing network volume that recently challenged Visa’s dominance, demonstrating the network’s expanding utility.
Key Metrics Hit 2025 Peaks
- Daily New Addresses: 556,883 (May 29)
- Coin Circulation: 241,360 BTC (June 2)
- Network Activity: Highest levels since December 2024
Price Action and Support Levels
While on-chain metrics flourish, Bitcoin’s price has experienced downward pressure, testing critical support levels. Technical analysis from crypto analyst Ali Martinez identifies two crucial support zones:
- Primary Support: $103,250
- Secondary Support: $101,000
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Institutional Interest Growing
Despite the price correction, large-scale investors holding 10,000+ BTC are showing renewed interest. This institutional confidence aligns with recent major Bitcoin treasury announcements, suggesting strong fundamental support for long-term price appreciation.
FAQ: Bitcoin Network Activity
What does increased network activity mean for Bitcoin?
Higher network activity typically indicates growing adoption and usage of the Bitcoin network, which can be a bullish signal for long-term price action.
How does wallet growth impact Bitcoin’s price?
New wallet creation often correlates with fresh capital entering the market, potentially leading to increased buying pressure over time.
What’s the significance of whale accumulation?
Large investor accumulation typically signals strong institutional confidence and can lead to reduced selling pressure in the market.
As Bitcoin’s network metrics continue to strengthen, investors should monitor these on-chain indicators alongside price action for potential trend reversal signals. The combination of increased network activity and institutional accumulation could set the stage for Bitcoin’s next major move.
