After the Chinese Marketing Campaign, Over 22K New Bitcoin Entities Created
October 6, 2020 2:44 pm
As per the data from on-chain monitoring resource Glassnode, shows that around 22,000 new Bitcoin entities created in a single day as one analyst suggest the added volume will translate to price gains. The normal level is between 5,000 and 10,000 per day.
Behind this large spike in new Bitcoin (BTC) addresses maybe China is responsible, as authorities launch a “targeted marketing campaign” in favour of crypto.
On Oct. 5, In a series of tweets, the analyst and market cyclist Cole Garner highlighted a two-year record increase in new BTC addresses last week.
“New #bitcoin addresses were absolutely off the charts last week. The backstory is bullish and intriguing — a unique view on a new bull market catalyst.”
Garner was building on other recent insights from statistician Willy Woo. On September 30, Woo described with the chart by Glassnode:
“We’re seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn’t happen often. This is what traders call a divergence, in this case, it’s obviously bullish.”
Also, “New addresses are an important volume indicator, Garner continued, and price action should follow. “Volume, precedes price.”
Crypto – The Best-Performing asset
The source of the new addresses cannot be determined with certainty. China, however, forms Garner’s best bet, as a widely-reported media campaign in the last week of September called cryptocurrency the best-performing asset of 2020.
In a further tweet by Cole Garner, “Last week the Chinese government began a coordinated marketing campaign to focus Chinese retail investor psyche on crypto. Yes, this is really happening.” The move also caught the attention of Primitive founding partner Dovey Wan, who described the Chinese state media campaign as “curious.” Also commented, “It’s rare for such a coordinated effort”
China has traditionally been seen as an unfriendly environment when it comes to consumers’ ability to engage with cryptocurrency. Despite mining activities openly continuing, the crypto ban from 2017 remains in place, with transactions confined to over-the-counter (OTC) trades.