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Bitcoin (BTC) remains at an inflection point, with the price slipping by 1.18% to $41,148.47 at the time of writing. Despite the consensus among analysts that Bitcoin might be in a bull market cycle, top market expert Ali Martinez has uncovered an important network metric that must be closely watched in the drive toward a full-blown bull cycle.
According to Martinez, there has been a "noticeable dip in Bitcoin network growth" over the past month. This, according to him, is casting doubt on the sustainability of Bitcoin’s recent move to $44,000. It is worth noting that Bitcoin soared as high as $44,705.52 on Dec. 8 as the hype surrounding the Bitcoin ETF hit a new high.
There has been a cool-off since then, and with the number of new addresses nosediving, Martinez senses a major hurdle might be ahead in the bid to retest this level.
He posited that for a "robust continuation of the bull rally, it's crucial to see an uptick in the number of new $BTC addresses." In his assertion, he is optimistic that onboarding new addresses that end up buying BTC may "provide the needed support for sustained bullish momentum."
Other Bitcoin catalysts to watch
Many metrics within the Bitcoin network are essential to track irrespective of whether analysts pay attention to them or not. Of these, a major catalyst stands out, and that is the race for a Bitcoin spot ETF from the United States Securities and Exchange Commission (SEC).
Should this ETF approval be granted, it can trigger many new buyers and new funds flowing into the Bitcoin ecosystem. This will increase the buying pressure on BTC, eventually driving prices up and solidifying the thesis from Ali Martinez in the long term.
Overall, the incoming Bitcoin halving event may also generate a similar reaction and, hence, is worth keeping an eye on as well.
Alex Dovbnya
Dan Burgin
Yuri Molchan
