Does the daily creation of hundreds of thousands of new BTC addresses equate to hundreds of thousands of new users? While a large number of new addresses appear on the BTC blockchain daily, not all of these addresses represent new users just entering the market. As the chart shows, the daily number of new BTC addresses has fluctuated between 230,000 and 330,000 for the past six months. It briefly exceeded 500,000 in early May, but quickly returned to the normal range. In September and October, despite relatively high BTC prices, the number of new addresses did not show a sustained and significant increase. Why doesn't a rise in BTC prices necessarily lead to a corresponding increase in new addresses? Because there isn't a one-to-one correspondence between Bitcoin addresses and actual users. An individual can own multiple BTC addresses, and exchanges may manage a large number of addresses. Even long-time BTC holders may create new addresses when transferring funds. This also involves Bitcoin's UTXO mechanism. For example, you have an unspent transaction output of 1 BTC and are prepared to pay 0.3 BTC. A transaction might take 1 BTC as input, pay 0.3 BTC, and then deduct the transaction fee from the remaining amount and transfer it to a new change address. If this address hasn't appeared on-chain before, it might be counted as a new address. Therefore, even without actual new users entering the market, new addresses can continuously be generated on-chain. This is why a sudden increase in the number of new addresses cannot be directly interpreted as a large number of new people buying BTC. Of course, this indicator still has reference value. It can help us observe changes in address activity on the BTC network, but to further determine whether the user base has expanded, it's necessary to combine it with indicators such as active addresses and new entities. New entities attempt to identify multiple addresses controlled by the same participant, but this identification has a certain margin of error. New address statistics are for addresses, not for people, and certainly not for the number of people buying new BTC. When observing BTC market trends, besides price fluctuations, you can also look at whether on-chain activity changes synchronously. However, to truly determine whether the market is attracting more participants, it's crucial to distinguish between an increase in the number of addresses and an increase in actual users.