By Eva Sgroi
Bitcoin is experiencing a remarkable resurgence in 2023, defying economic challenges and surprising skeptics who declared the demise of the cryptocurrency market.
The world’s most valuable digital currency has not only doubled in value, with a nearly 150% surge since the year’s onset, but has also witnessed a noteworthy recovery in active addresses.
Data from AltIndex.com reveals that after a two-year decline, the number of active Bitcoin addresses has rebounded, registering an impressive increase of 2.6 million in 2023.
Heightened Interest from Mainstream Investors.
The revitalization of Bitcoin’s network is attributed to heightened interest from mainstream investors, marking 2023 as a pivotal year for the cryptocurrency.
Despite facing substantial global headwinds, Bitcoin, which bore the brunt of a crypto price crash, gained traction among mainstream investors.
This influx of attention not only fueled its value surge but also reshaped the global perception of digital assets.
BlackRock’s Application Intensifies Institutional Interest
The failure of mainstream investments, coupled with the collapse of Silicon Valley Bank, prompted investors to seek more transparent and alternative options, boosting confidence in Bitcoin.
Notably, BlackRock’s application for a Bitcoin ETF further intensified institutional interest, facilitating the recovery of almost all losses incurred the previous year.
Surge Marks Renewed Interest
This surge in interest translated into increased activity within Bitcoin’s network, marking a reversal in the trend of declining active addresses observed over the past two years.
Glassnode, a crypto analytics platform, illustrates the historical trajectory of active BTC addresses. The years between 2013 and 2017 witnessed a constant rise, peaking in 2017 with a record-breaking increase of over nine million new addresses.
However, the subsequent year saw a significant setback, with a 75% value loss in 2018 leading to a drop of 9.7 million active addresses—the most substantial decline recorded.
Crypto Winter Causes Reduction of Addresses.
While 2019 and 2020 saw a partial recovery, with increases of 2.3 million and 6.6 million addresses, respectively, the trend reversed in the following two years.
Market turbulence and the exodus of “market tourists” during the crypto winter caused a reduction of over three million active addresses in 2021, followed by an additional loss of 695,000 in the subsequent year.
20.8 Million Active Bitcoin Addresses in 2020Although the number of active addresses rebounded by 2.61 million in 2023, bringing the total to 20.19 million year-to-date, this still falls short of recovering the losses incurred in the past two years.
In December 2020, Bitcoin’s network boasted 20.8 million active addresses, surpassing the current year-end count by 1.1 million.
Read also 2023 And Bitcoin: An Appraisal
Bitcoin’s Significant Comeback
Remarkably, almost 90% of Bitcoin addresses are currently in a profitable state, showcasing the cryptocurrency as one of the top performers in the crypto space.
Glassnode’s data indicate a substantial increase in addresses with positive returns, soaring from 51.4% in December of the previous year to an impressive 89.6% in the last week, emphasizing Bitcoin’s robust performance over the past twelve months.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry