The post Bitcoin wallet creation hits 6-month high, but traders sit back: Why? appeared on BitcoinEthereumNews.com.

Bitcoin saw 556K new wallets and 241K BTC moved, the highest activity since December 2024. Derivatives market shows mixed sentiment as Futures rise but Options volume slumps. Bitcoin [BTC] has seen a strong rise in on-chain activity, with 556,830 new wallets created on the 29th of May—the highest since the 2nd of December 2023.  Additionally, 241,360 BTC were circulated on the 2nd of June, marking the highest coin movement since the 8th of December 2024.  These spikes come as Bitcoin trades just below $105K. Rising wallet creation and circulation suggest growing interest in the network and higher usage across exchanges.  This trend may signal a build-up toward greater market participation, potentially acting as a foundation for upward momentum as market volatility remains suppressed. Restrained sell pressure from mining entities The Miners’ Position Index (MPI) rose 9.85% over the last day to -0.55. Despite the uptick, it remained negative, suggesting miners were still net holders. A lower MPI often reflects confidence from miners, indicating they expect higher prices ahead.  Miners are historically price-sensitive and tend to sell during tops. So far, their restraint suggests reduced sell-side pressure.  This supports a bullish environment, especially if combined with consistent accumulation from other long-term holders, who also remain relatively inactive. Source: CryptoQuant Limited movement from dormant coins Coin Days Destroyed (CDD) climbed 2.22% to 21.97 million. The metric measures the movement of older BTC that has not been transacted in a long time.  A slight increase means some long-held coins are moving, but the level is not high enough to trigger concern.  In bull markets, sharp spikes in CDD typically signal profit-taking. However, the current modest rise suggests long-term holders are still largely on the sidelines.  Their reluctance to sell supports price stability and reflects continued confidence in Bitcoin’s long-term potential. Source: CryptoQuant The…

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Filed under: News - @ June 5, 2025 8:28 pm