The year 2023 has been fairly good for cryptocurrencies, especially compared to 2022. It was in 2022 that the crypto market lost all the gains it gathered in 2021 when Bitcoin reached an all-time high of over $60,000.
Bitcoin crashed to a low of $15,000, depleting investor confidence considerably. This led to a short crypto winter between November 2022 and January 2023 when the market began to recover. Before long, the market was back on top and Bitcoin headed back to $30k, albeit slowly.
For the past month or so, Bitcoin has been around $30k, sometimes going over and sometimes staying under. It has been a painful process for investors looking forward to a new big leg up towards the all-time high again.
However, the market has been more exciting in general, and this seems to be attracting more investors and encouraging old investors to invest more. Not only Bitcoin, but some of the top ten crypto assets have done very well, significantly boosting investor confidence.
More interestingly, recent data reveals that more people are coming into Bitcoin and more are buying Ethereum in preparation for another bull market to arrive. This is not a surprise, as analysts have been hinting on a coming bull market on the horizon.
Bitcoin and Ethereum Looking Attractive
Perhaps the most encouraging news is that the number of Bitcoin addresses is on the increase. Data from blockchain analysis platform Glassnode reveals that the number of Bitcoin wallets has risen to reach a new monthly high 19,833.952. This is one of the highest values for any month since April this year, showing growing interest.
Previous data has also shown that both retail and institutional investors are hodling Bitcoin rather than selling, indicating positive sentiments. While the number of wallets fell slightly while Bitcoin was at $30,000, the number has bounced back, showing determination among investors to hold on.
Glassnode has also published data that shows Ethereum non-zero addresses have reached an all time-high value at 102,469,037. The figure has been increasing steadily since 2016 to reach the current number,
This shows that there’s an increasing accumulation of the asset over the years, and that those with dormant wallets they haven’t used in years are dusting them up and putting some Ethereum in them.
Both the new address all-time high and the non-zero addresses for Ethereum are positive indicators that more investors are optimistic about the future of the crypto market. This is likely to attract more investors in the long run, building up momentum for another bull market to come.
Alt Season Still Far
While these metrics indicate positive investor sentiment, some analysts have concluded that an altcoin season is still far away. This may be a bummer for those expecting a bull run this year, unless a miracle happens.
According to the analysts, no significant price gains are expected for any of the altcoins until after the Bitcoin halving in 2024. For some investors, this is a positive thing, since it gives them a lot more time to accumulate their favorite altcoins before the alt season comes.
Indeed, alt seasons are times when altcoins – cryptocurrencies other than bitcoin – soar in price. It usually comes after a bitcoin bull run, and can be pretty wild, with many altcoins rising to hundreds of times their initial prices.
