Despite sideways movement, the signs for Bitcoin are still good.
The price development of Bitcoin ( BTC ) went mostly sideways in September, with the decline in the price of Altcoins and DeFi cryptos making things more difficult.
Although the price is lacking in buoyancy, the on-chain data indicate that the Bitcoin blockchain is gaining new participants in large strides
Bitcoin has not yet been able to capitalize on this, but crypto analyst Willy Woo is confident that this is a very strong omen, he wrote on September 30th:
“The entry of new network participants has not yet been reflected in the Bitcoin price, but it has always been the case. As a trader, one calls something like this a divergence, which is to be assessed positively in any case. “
Bitcoin: Number of new entities vs price
As can be seen from the diagram above, the number of new Bitcoin network participants has increased significantly since last week, significantly surpassing the August figures.
Where do the new ones come from?
Some experts suspect that the increase in new Bitcoin participants is due to the downturn in Altcoins and DeFi tokens. In the past 30 days, these have lost double digits, which could have caused many crypto investors to flee towards Bitcoin.
In addition, the current “strength” of the market leader could have an attractive effect. Although the course recently repeatedly failed at the 11,000 US dollar mark, Bitcoin was at least able to establish itself above the 10,000 US dollar mark .
In view of the ongoing uncertainty and economic weakness in the wake of the Corona crisis, Bitcoin could more and more have proven itself to be a reliable store of value.
Even if the US dollar is the most popular financial product in times of crisis, a second wave could mean another major blow to the global economy. Many investors would then turn all the more to „safe havens“ like gold and Bitcoin, especially when the US dollar depreciates .