Bitcoin wallet addresses created in November inched toward 1 million

Are retail investors returning to Bitcoin (BTC?)? Glassnode data shows that there are encouraging signs for a bullish 2022. From November to December, there were 913,000 new Bitcoin addresses.

On-Chain College, a bitcoin analyst shared valuable data about retail adoption and potential trends for broader adoption. To wrap up the year, the key takeaway is that the Bitcoin network saw an additional 1,000,000 users in November.

The Twitter flood confirms that the macro outlook for Bitcoin is still sound, despite bearish price action in short-term. The chart shows that the number wallet addresses with balances greater than zero has increased from 30 million wallets to 40 million between June 2020 and December 2021.

Glassnode defines the non-zero balance as the number unique addresses that have a positive (nonzero) amount in coins. New users will join the Bitcoin network when the number is increasing.

It shows that users have empty their wallets to zero when it trends down as shown in the orange line at the graph. Inference: Wallet addresses’ decline is a downward price action indicator.

Related: Bitcoin dominance drops below 40%

It begs two questions in light of November’s new entrants: Was it just an outlier fuelled by excitement after recently reaching an all-time high? It was the beginning of a larger trend.

It is heartening to know that potential investors have more options to invest in Bitcoin, thanksgiving and festive celebrations, as well as Omicron fears in December and November.

The claim was supported by December reporting, where the balance of wallets holding less than 1 BTC — usually implying small-scale investors — increased to their highest level since March 2020.

There is however a caution about the future of retail. William Clemente, a BTC analyst and often quoted in Cointelegraph, tweeted a series graphs with the message, “retail interest is pretty much gone since Spring.”

We need more evidence that retail is happening. Although it was widely reported that banks are now buying Bitcoin over gold in October, Google Trends search data on “Bitcoin”, which was available during December 2017, is only a quarter of the peak. Retail mania is still a ways away.