June was a much tougher month for Bitcoin than many expected at the beginning of the month. This is because the price of Bitcoin practically dropped throughout the monthleaving many investors, especially short-term holdersdisappointed.

However, despite the price decline, chain data suggests that Bitcoin adoption is growing. Up-to-date data shows that the number of modern Bitcoin addresses being created has increased to its highest level in two months. This growth suggests that the long-term prospects for Bitcoin remain forceful.

Up-to-date 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 boost in modern addresses contrasts with a larger decline in modern addresses since November 2023. This modern boost indicates an influx of modern users entering the cryptocurrency space. As more people adopt Bitcoin, demand will inevitably boost, which is a catalyst for price increases in the future.

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

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

— Ali (@ali_charts) June 29, 2024

Much of the boost 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 over 10% of its market capitalization in 30 days, with bulls struggling to break above $61,000. This downtrend can be attributed to sell-offs by miners and many others long-term holders. Specifically, about 40,000 BTC were sold in June by long-term holders.

Bear markets are short-lived. The boom will return. It’s just a matter of when, not if. The second half of the year is approaching, so time can only tell how Bitcoin’s price will develop. Of course, modern wallet addresses have no direct impact on price, but they are a leading indicator of growing Bitcoin adoption.

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

Featured image from CNBC, chart from TradingView