Research firm Glassnodes came up with new metric for bitcoin adoption. This metric may breakout and foreshadow next bull run.
Bitcoin bulls have a lot of reasons to be excited. On Wednesday, the top cryptocurrency posted a fresh 2020 high of $9,443.96. It’s also up over 30% year-to-date and it continues to show signs of strength.
The top cryptocurrency is close to breaching the resistance of a key metric. I’m talking about the number of entities entering bitcoin on a daily basis. The growth of entities strongly suggests that more people are using the cryptocurrency. This metric is relevant because the last time adoption grew, the cryptocurrency launched a bull market.
Number of Bitcoin Holders Vs. Net Growth of Entities
Getting the actual number of bitcoin holders or users is a herculean task. That’s because there are two obstacles:
- One holder can have multiple wallet addresses;
- One bitcoin address, such one belonging to as a crypto exchange, can hold the funds of multiple individuals.