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BitcoinBitcoin Experiences Surge in New Addresses in Retail Boom But Theres a...

Bitcoin Experiences Surge in New Addresses in Retail Boom But Theres a Catch

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In the dynamic world of digital currencies, Bitcoin has recently experienced a notable increase in the creation of new wallets, reaching a peak not seen in the past four months. This trend suggests a resurgence of interest among individual investors in the realm of cryptocurrencies.

Market analyst Ali has pointed out this upswing, emphasizing that the old stock market saying “Sell in May and go away” has become obsolete as individual investors are making a comeback. This is evidenced by the spike in new Bitcoin wallet creations, which have soared to 432,026.

The mantra “Sell in May, and go away” has been put to rest!
Individual investors are making a return, with new
wallets reaching a four-month peak of 432,026!
— Ali (@ali_charts)
July 2, 2024

**Miner Challenges Amidst Economic Strain**
While the uptick in individual investor activity is a positive indicator, not all segments of the Bitcoin network are thriving. Research from **Kaiko** reveals that Bitcoin miners are under strain following the currency’s fourth halving event.

April saw a fleeting rise in network fees due to heightened activity from Ordinals, an application embedding non-fungible tokens (NFTs) within Bitcoin’s blockchain. However, these fees have since receded. Transaction fees now hover between **$3 and $5**, with an exceptional surge to **$102** in early June.

Source: **Kaiko**

The decline in transaction fees has coincided with a halving of block rewards, dropping from **6.25 BTC to 3.125 BTC**. This has financially pressured miners, leading some to sell off their Bitcoin reserves to cover operational costs.

For example, **Marathon Digital** reportedly sold **390 BTC** in May to manage its expenses and treasury. In response to these fiscal pressures, several mining entities are contemplating strategic mergers to pool resources and improve efficiency. A case in point is **Riot Platforms’** recent purchase of a **14% stake** in **Bitfarms** at **$2.45 per share**.

**Bitcoin’s Price Trajectory Amid Market Fluctuations**
Amidst these challenging times for crypto miners, Bitcoin’s valuation has shown signs of rebounding, albeit with continued volatility. Over the last week, the cryptocurrency has appreciated by nearly **3%**, but it has faced difficulty in maintaining a stable position above the **$63k** threshold.

The most recent figures show Bitcoin’s value at **$61,881**, marking a **1.8%** decline over the past day. This fluctuation highlights the persistent uncertainty in the market, swayed by a mix of immediate and broader economic influences.

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