Bitcoin sees surge in new addresses as doubts surrounding Silvergate affect BTC

by James · March 3, 2023

The number of new Bitcoin addresses has reached a three-month high.
However, concerns over Silvergate contributed to a nearly 5% drop in the BTC price.

Bitcoin Price Fluctuations [BTC] has been driven in the past by both individual and institutional investors. However, recent developments suggest that one party has far more influence than the other over the course’s direction.

Read Bitcoin (BTC) Price Prediction 2023-24

Table of Contents

Enter, retail investors

There has been an increase in the number of new addresses on the Bitcoin network, according to data from Glassnode. The gradual increase in Bitcoin prices that has occurred recently also coincided with the increase in new addresses.

Source: Glassnode

On 2 February, 505,298 new addresses were registered, measured with the Glassnode metric. A close examination of the graph confirmed that it was the most significant figure the network had seen in the previous three months.

November 2022 is also the only month in the previous five months to have seen statistics similar to, but slightly higher than, November 2022.

In accordance Alicharts, the growing number of Bitcoin addresses is cause for optimism. As a result, barring negative impact from institutional players, the asset’s price could rise even more, signaling growing confidence in BTC.

The institutional actors’ effect

When we consider the role of institutional players, we see that the price of Bitcoin has been negatively affected by the collapses of exchanges such as Mt.Gox, Terra and FTX. Bitcoin was still trying to break beyond the $24,000 barrier, but recent news may have dampened the rally.

In less than an hour on March 3, the price of Bitcoin [BTC] fell from $23,500 to $22,240, a drop of almost 5%. There was widespread unease about the future of crypto-friendly bank Silvergate Capital, which contributed to the decline.

In accordance CoinMarketCap data, the price drop reduced Bitcoin’s entire market cap by $22 billion.

The Strange Case of Silvergate

Silvergate is a leading cryptocurrency bank that has established relationships with key trading platforms. The crypto-friendly financial institution has postponed filing its annual 10-K report with the SEC (SEC).

Due to more significant losses in the fourth fiscal quarter last year compared to what was first reported in January, the bank has notified SEC that its financial condition may be different than previously disclosed.

The bank is said to have also expressed concern over the lack of clarity in the crypto rules. As a result, companies and exchanges dealing in cryptocurrencies have distanced themselves from banks. This includes the likes of Circle, Coin base, Bit stampand Galaxy Digital.

BTC is entering a bear trend

The price of Bitcoin was still struggling to recover from the fall at the time of writing. It was trading at $22,000 and had lost more than 4% on a daily time frame.

The recent decline has also caused the price to move below the short-term moving average (yellow line). The Relative Strength Index (RSI) line had crossed below the neutral zone, signaling that it had also entered a bearish trend.

Source: TradingView

How much is 1,10,100 BTC worth today

Bitcoin Optimism?

Despite the recent decline in the price of Bitcoin (BTC), there was no panic. Exchange deposits didn’t seem out of the ordinary, according to Exchange Netflow data from CryptoQuant.

At the time of writing, there were fewer than 200 deposits on exchanges, although there were more deposits than withdrawals. Nevertheless, as the story unfolds, it is important to consider how institutional and private investors react and influence price movements.