The Bitcoin (BTC) price remained relatively unchanged in September, and the sharp fall in altcoin and DeFi prices seems to make things worse for many investors.
Despite the lack of speed, data along the chain shows that new players are joining the Bitcoin network at an alarming rate.
Although the price has not responded to the strong influx of new players, network analyst Willie Wu believes that this is a strong optimistic signal. On September 30, Wu tweets:
“We are seeing an increase in the activity of new players in BTC, which is not yet reflected in the price, and this does not happen often. This is what traders call divergence, and in this case it is clearly a bullish move. ”
As shown in the chart above, the number of new organizations joining the Bitcoin network has risen since last week, and the scale has clearly exceeded the figures recorded in August. The scale measures the number of groups (portfolios) owned by a particular person or group.
How do you attract new members?
Some analysts believe that the increase in the number of new companies may be partly due to the sharp decline in the number of DeFi tokens and altcoins. Many have recorded double-digit losses in the last 30 days, and this may have prompted investors to look for safer alternatives in the cryptocurrency market.
Although the bitcoin price has repeatedly failed to break the $ 11,000 level, it has remained stable over the last month at over $ 10,000.
Given the current economic and political chaos gripping the United States and other countries affected by the coronavirus pandemic, the stability of bitcoin prices strengthens the argument that bitcoin is a powerful store of value.
While the US dollar remains the most sought-after asset in the face of the recent financial crisis, it is possible that a new wave of coronavirus infections could adversely affect the world economy. An event like this can encourage investors to invest in assets such as gold and bitcoin, especially if the dollar loses strength.