Bitcoin’s booming price seems to be attracting new investors. Data from the analytics company Glassnode indicated that the BTC network has just registered the highest number of newly created address in nearly three years.
Bitcoin FOMO Kicking In?
The primary cryptocurrency has been on a massive roll in the past few months. The days of dabbling around the $10,000 price tag in early September are long gone. In fact, BTC has nearly doubled its price since then.
During the past month alone, Bitcoin has registered several consecutive new 2020 highs.
This impressive price-performance reached even mainstream media, as outlets such as CNBC rush to cover the news. It smells like late 2017 and early 2018 again and Glassnode’s data seems to be confirming it as well.
As the graph below demonstrates, the number of newly created BTC addresses just registered a near three-year high. The last time such a large number appeared on the network was in January 2018.
At the time, Bitcoin had just started to retrace from its notable price run that led to the all-time high price of $20,000. As BTC is just a few thousand dollars from breaking above that coveted level, the masses have started to pay more attention once again.
Bitcoin ATH At Realized Price
Although the traditional Bitcoin price hasn’t yet reached a fresh all-time high, the asset’s realized price has done so. Further Glassnode data indicated that the realized price has crossed above $7,000 for the first time in its history.
The so-called realized price of the primary cryptocurrency is calculated by dividing the realized market capitalization by the current supply. The realized market cap is computed by multiplying each Unspent Transaction Output (UTXO) by the price when it was last moved.
In other words, the realized price and realized market capitalization aim to exclude bitcoins that have been lost or haven’t moved in a long time. As such, they differ from the traditional market capitalization or price, which take into consideration all coins that have ever been created.
The analytics company says that the realized price can be “interpreted as the average BTC cost basis.”