Bitcoin (BTC) remains at an inflection point, with the price down 1.18% to $41,148.47 at the time of writing. Despite the consensus among analysts that bitcoin may be in a bull market cycle, top market expert Ali Martinez has identified an important network metric that needs to be watched closely in the drive towards a full-blown bull cycle.
According to Martinez, there has been a “noticeable dip in bitcoin network growth” over the past month. This, he says, casts doubt on the sustainability of bitcoin’s recent move to $44,000. It is worth noting that bitcoin spiked to $44,705.52 on December 8 as the hype surrounding the bitcoin ETF hit a new high.
Since then, it has cooled off, and with the number of new addresses plummeting, Martinez senses that a major hurdle may be ahead in the bid to retest that level.
He noted that for a “robust continuation of the bullish rally, it’s critical to see an increase in the number of new $BTC addresses. In his assertion, he is optimistic that the onboarding of new addresses that end up buying BTC could “provide the necessary support for sustained bullish momentum.
Other Bitcoin Catalysts to Watch
Many metrics within the bitcoin network are important to track, regardless of whether analysts. Of these, one major catalyst stands out, and that is the race for a spot bitcoin ETF from the United States Securities and Exchange Commission (SEC).
If this happens, it may trigger a lot of new buyers and new money flowing into the bitcoin ecosystem. This will increase the buying pressure on BTC, eventually driving prices higher and solidifying Ali Martinez’s thesis in the long run.
Overall, the incoming can also generate a similar reaction and is therefore worth keeping an eye on as well.
