Bitcoin Forum

With 25 000 new bitcoin addresses created today and new money keep flowing into bitcoin market it's clear that bullish trend is very strong, but do you think creation of new addresses is a valid metric ? Creation of a new address doesn't automatically means that the user is new, I have many bitcoin addresses.

No. Most people have way more than just "a few" Bitcoin addresses, they are only considered "generated" when they have funds being sent to them which is not a valid metric by any means; most people use change addresses which are also newly generated. It's nothing indicative of the adoption rate.

You could have added a source for this:
https://decrypt.co/48642/nearly-25000-bitcoin-address-were-created-in-just-one-hour

And no it doesn't mean for sure anything other than people moving funds to new addresses never used before, it could be created by a single old user or exactly 25 000 newbies, but yeah, usually it would point to increase activity which could point to new users.

Looking at the mempool I see a spike in 1sat/b transactions of about 4MB, I wonder if some moron is spamming the network again

I also don't think that the search trend is accurate, at least it has a huge margin of error. For example, someone who types "bitcoin" probably wants to find the recent price, not necessarily a new user who wants to buy or join the community. Exchange users could be a better data source but it's not easily accessible.

A valid metric would be with numbers and a data that correlates with the current investments.

For example, if you have data like, 25000 addresses and out of them 12500 address has done transaction of lets say 10k BTC after generation (for cold storage, exchangers etc) then you might say it will add some capital into the current trend.

In the remaining addresses half might have just created for internal transfers or storage, some of them might have been created but not used at all etc.

This will help plot a % contribution into the current trend. Then you can say that generation affected in reality.

Otherwise it's not that difficult to generate thousands of addresses in a click. That's just low throughput data without any leads.

That's a big NO for me, even though exchange can generate tons of Bitcoin addresses in different users in just an hour.  I remember HitBTC exchange, they can generate different Bitcoin addresses as much as you can or generate new address after you have used for privacy purposes.  The true indicator of the valid metric has data, graphs, stats, and of course, the right source on it just like what said posted above.

I don't know what is the purpose of generating thousands of addresses or it was a coincidence that someone will be trying to manipulate the Bitcoin network for their own purpose IMO.  But I really appreciate the report of the glassnode (https://studio.glassnode.com/metrics?a=BTC&category=Addresses&m=addresses.NewNonZeroCount&mAvg=24&resolution=1h&s=1511833407&u=1605697200) showing the graph of generated addresses.

However, whatever it is, still the news is on the positive side of Bitcoin.

Regardless if a single person could have created the 25k new Bitcoin addresses(though probably unlikely, because why?), like what stompix said, we could at least make the assumption that there was probably an increase in bitcoin usage.

Also, not sure how a person generating thousands of addresses would be him/her trying to "manipulate" the Bitcoin network. Generating addresses doesn't affect the blockchain at all, unless the person is spamming the network by spamming low sat transactions to thousands of addresses.

Everyone is saying No, as if there's nothing to take away from this.  I think it is worthy of taking in to account to an extent.  I'm not saying it's a huge tell tale sign, but it's still notable.  We can always assume that the majority of new addresses is from existing "bitcoiners" and compare bull run times like now compared to slower times. Surely there is a difference.

No, creating new addresses wouldn't be a valid metric to realize the bitcoin trend. There are many commercial websites accepting bitcoin and creating a lot of bitcoin addresses. It doesn't necessary to assume that they are all newbies entering on Bitcoin. But yes, we may assume uses of Bitcoin increasing if the address creation ratio greater than before ( I don't know the previous ratio).

Anyway, let's assume positive because everything possible in bitcoin. We don't know the exact reason for the current bull run.

Frankly, this might be a good action on the part of these investors, if they are new address from new holders then it is a good metric and a valid type but if not, they can't hold water for a valid metric in my opinion. Anybody can choose to create some new random wallets addresses which will be funded from the old wallets addresses, so, with this act there won't be a valid metric for bullish thread we have be seeing recently.  

I guess you are talking about this Number of new Bitcoin addresses spikes amid growing FOMO  (https://cointelegraph.com/news/number-of-new-bitcoin-addresses-spikes-amid-growing-fomo)

You have interpreted it wrongly. It's not 25000 addresses today it is actually 25000 bitcoin addresses per hour.
The newly registered bitcoin addresses per hour has hit the 25000 record today for the first time since 2018.

Here's the all time chart for newly generated addresses which shows the record is at par with 2018

This metric shouldn’t be of any importance as most newly-created addresses are just change addresses belonging to the same user. Also, most tickers only recognize ‘new addresses’ when it receives some amount on them, while other generated almost recently with nothing in them are just assumed to be not generated until something comes in them. This doesn’t tell us anything even remotely related to adoption, IMO.

Creators are either new users.or.old
holders. Although this is just a tip of an an iceberg many persons are still undecided about their crypto life.

it can happen, 25000 new bitcoin addresses, with a huge wallet power, it can make the bitcoin market create a good trend.  I think it's the new whale wallet, if it's 25000 wallets with a little power then it's just trash.  You should analyze another reason bitcoin is trending high today.

25k or more bitcoin addresses isn't the only factor to consider but in more sophisticated way I tend to get into trends as well especially on Google. You can see here that we aren't that close from the 2017 ATH interest but yeah bitcoin still soaring high these days but I'm more bullish maybe the early months or mid months of 2021 https://trends.google.com/trends/explore?date=today%205-y&q=Bitcoin

https://i.imgur.com/2WSRcHk.jpg

I guess half of them are generated by bot and veteran users but the others are created by new users. This is a good sign to the crypto world since people raise their awareness of bitvoin and its current uptrend.

If everything goes well and more people join the market, we will soon hit $20000 in a few more weeks. We are at 90% of our previous all time high.

I m gussing hacker created all this Lol. Its not. Where did u check 25k address?
And for the bullish trend created because of grayscal huge btc buying & paypal accept crypto-currency.

Before jumping to any conclusions, it would be better to perform blockchain analysis on these addresses. For exmaple, it's fairly easy to spot exchange transactions, because their hot wallets are well-known. If it looks like most of these new addresses were used for withdrawing from exchanges, it could mean that either new users withdrawing their coins, or existing users are buying more BTC. But if these addresses belong to exchanges, this could mean that people are registering exchange accounts to dump their coins.

We don't know exactly how many are generated by old users vs new users here. But one thing that it demonstrates here, is that people are generating more btc addresses for various purposes and that means more btc activity is expected.

This does not prove that all the newly address have Bitcoin in them, as you have mentioned we cannot assume especially during this situation when everyone claims Bitcoin to reach ATH as users might relate further pump to newly created address without any concrete proof or evidence.

Even if half of the newly created address have Bitcoin in them then it will still make a difference to the market price.

I have seen topics similar to this in the past citing creation of new wallet address means a big deal but in fact it has nothing to do with the bullish trend, when the price touched the bottom we might have the same number of wallets created to move the coins for the long term and we might be seeing users moving their coins expecting to dump according to the market situation and you can have any speculation that suits you  ;).

Nothing to do with the bullish market, but this shows how people are getting onto the cryptocurrency market. We don't know whether the entire wallet gets into usage, but for sure the cryptocurrency community is widening with time. This can also be used as a source of speculation. As the market is reactive to any form of news associated with it, it could also make small impact.

It depends on what's for the new wallet. Is the person generating the wallet for their contemporary asset by a few people or it is exactly generated by new comer who wants to invest in Bitcoin? Or lets we say if around 40% are coming as new investors of BTC, it will give a positive impact. But if it is only the usual generation for temporary wallets, I think it may not give many effects.

In a wallet, you will have a default list of receiving address (receiving and change address in Electrum wallet). You can create more address that exceed the default list but you can also never use those addresses you create. All addresses you create with wallet software is bonded with the seed of that wallet.

25k new bitcoin addresses were created in 1 hour but how about number of addresses have bitcoin inside? And how much bitcoin was stored in each addresses? 25k addresses can do dust attacks if they want like Roger Ver and his teammates did in 2017 to manipulate bad news on bitcoin network, congestion, high fees and the end try to convince people that BCH is a real bitcoin and a future of crypto currency.

Forget the article and never mind about it.

All of them!
You can't count addresses that have no incoming or outgoing transactions from as there is simply no entry in the blockchain for them.
For example, I can generate millions of new addresses right now with a simple program and hundreds like me could do the same but those can't be counted by anybody as they are not registered anywhere. How would you know if 1HBjryUR9G18srFh9tWXJusxpXmqYuWqeh is actually owned by somebody or not?

Glassnodes sees those as:

There are hundreds of thousands of them each day, but there was an unusual spike yesterday, you can see this one other graphs,but most of them only show daily values so that unusual hour gets buried between others.

why do you have many addresses @op what are you going to do with that or do you hide something from us ? hmm . i dont feel the need of creating a new bitcoin address because i dont hide anything and im only one user . the reason why there are so many address is because there are new users that joins btc . the btc bull and the btc in paypal can be the caused for those people to sign up and get btc address imediately . they wont create a btc wallet for display or to stare at it the whole day but they do want to fill that with a btc asap . we can expect more pumps in the coming days , nice .

How much BTC address was created every hour 4 years ago, do we have this data too?

If the number is different like low than 25K, there must be a massive creation due to adoption and users generating every time. Wallets can create hundreds of addresses though and we can generate one every transaction. Although not every address is going to be used, 25k is still is a lot.

I think that a new adress doesn't mean a new user because there is many wallets that give you the ability to fenerate a new adress when you want and without any limite to help people in their security

When you see a new Bitcoin wallet address, it doesn't mean that many new users have logged in using Bitcoin, but most people who have been holding Bitcoin for a long time are recreating new Bitcoin addresses to put their Bitcoin on multiple wallet addresses, maybe they don't want to keep it in one wallet address. Because then they will not be able to lose all the Bitcoin they have.

The new address must be accompanied by an increase in the price of bitcoin, maybe it is valid because bitcoin is still increasing and trying to recover from yesterday's correction. We still have one more information that could make the bitcoin price pass its all time high, yeah we still wait for the stimulus from the US government because if this happens there will be many people who will buy bitcoin like has happened in March.

I agree with this, even me, I can generate 100 wallet address in 1 day or more using different wallets, so it's not really a metrics to say that the market is already in bullish more or in FOMO mode, though it's bullish but I'm not yet convince it will continue, maybe until we reach $19k which is a very interesting figure as it's close to bitcoin's ATH already.

Really having a fresh account does not grant or specified that someone is new, because one person can have several accounts and still pretending to be novice in all, I think I really agree with you in the aspect of creation of bitcoin account  to be much as you wants, and I think having multiple accounts don't really have any effects.

No. It doesn't really validate the inflow of new users. Some wallet users would prefer splitting their coins into different address because it's easy to create wallet without having to perform any verification, all that is needed is just storing your private keys.
The only way to validate those address is to know if there are coins in them. If there is coins in huge percentage, then it's a bullish sign for us.

I agree with it we couldn't tell how many of those new create wallets are really made by a new investors?
But I think we are really having a huge amount of fresh money and it is getting the price higher we are already near the current ATH after almost 3 years.

not this is not a valid metric, since most of bitcoin user create new address when they should receive a payment.
a good instrument could be "how many addresses own at a certain amount of coin in a specific timeframe" since a certain level it means more people are joining the network.
but even this isn't the best metric since various addresses could belong to the same ownership.

I think this is good, whether it is a wallet on an exchange or a standalone wallet, or etc. It means that the development of transactions and the need for wallets is quite large. Whether the wallet contains or not is at least positive news and I think the number will be even more. Maybe if you look at the details about the contents you can do one by one but this is very long, you can also open here (https://studio.glassnode.com/metrics?a=BTC&category=Addresses&m=addresses.NonZeroCount) to find out the amount of their balance.

Creating a new wallet address does not mean there are new investors. I have multiple wallet addresses to move some of the assets I have for security. What I mean is, if one of the wallet addresses has a problem (such as a hacker attack) I still have crypto assets that are still stored in a different address.