June was much more arduous for Bitcoin than many expected at the beginning of the month. This is because the price of Bitcoin virtually decreased throughout the monthleaving many investors, especially short-term holdersdisappointed.

However, despite the price decline, chain data suggests that Bitcoin adoption is growing. New data shows that the number of modern Bitcoin addresses being created has risen to a two-month high. The augment suggests that the long-term outlook for Bitcoin remains powerful.

New BTC addresses hit two-month high

Despite the price drop, the network is showing a promising trend that signals the future growth of the world’s largest cryptocurrency. According to Glassnode chart data initially shared on social media platform X by crypto analyst Ali Martinez, modern BTC wallet addresses have been steadily increasing over the past week, reaching 352,124, the highest level since April.

Interestingly, the chart shows that the recent augment in modern addresses contrasts with a larger decline in modern addresses since November 2023. This modern augment indicates an influx of modern users entering the cryptocurrency space. As more people adopt Bitcoin, demand will inevitably augment, which is a catalyst for price increases in the future.

Additionally, Martinez suggested that the augment in modern addresses is due to the return of retail investors. While institutional investors often drive massive market moves, retail interest is key to widespread Bitcoin adoption.

Retail sales #Bitcoin investors are coming back! The number of modern $BTC the number of addresses on the network increased to 352,124, the highest level since April. pic.twitter.com/GFOHnsokz0

— Ali (@ali_charts) June 29, 2024

Much of the augment in modern addresses can be attributed to recent adoption in the Brazilian market. Nubank, Brazil’s largest neobank, recently announced plans to integrate the Lightning Bitcoin network into its services. As the largest fintech bank in Latin America, this integration could potentially expose a significant portion of its 100 million customers to digital assets.

What’s next for bitcoin?

At the time of writing, Bitcoin was trading at $61,446. The leading digital asset has lost more than 10% of its market capitalization in 30 days, with bulls struggling to break above $61,000. This downward trend can be attributed to the sell-off of miners and many long-term holders. Specifically, approximately 40,000 BTC were sold by long-term holders in June.

Bear markets are fleeting. The bull market will return. It’s just a matter of when, not if. As the second half of the year approaches, only time can tell how the price of Bitcoin will develop. Of course, modern wallet addresses have no direct impact on the price, but they are a leading indicator of growing Bitcoin adoption.

This adoption and demand, coupled with the recent decline in modern Bitcoins entering the market, indicates growth in the price of Bitcoin in July.

Featured image from CNBC, chart from TradingView