Bitcoin saw the addition of over 344,00 new wallets yesterday, May 8, signaling rising retail activity as price reached a nine-month peak.
Bitcoin recorded a sharp surge in price between May 6 and May 9, 2025, climbing from under $94,000 to touch $104,000. The move followed a brief consolidation phase seen from May 3 to May 5.
However, the recent price jump was not isolated. Data from Santiment, CoinGecko and SoSoValue reveals that wallet growth, user participation, and derivatives market dynamics significantly contributed to the acceleration.
Record-Breaking Wallet Growth
While Bitcoin price spiked through $103,000, a total of 344,620 new Bitcoin wallets were created, marking one of the highest single-day growths in wallet activity for 2025. The last time Bitcoin saw a comparable wallet increase was in April. This latest notable surge aligned directly with the start of the upward price movement.
📈 Bitcoin's network saw 344,620 new wallets be created on its network as FOMO poured in. Crypto's top market cap asset has silenced bears, reaching a high of $103.8K for the first time since January. 👀 pic.twitter.com/hai245lQJz
— Santiment (@santimentfeed) May 9, 2025
Historically, rapid wallet creation often indicates new retail inflows, a trend typically associated with heightened investor interest during periods of positive market momentum. The latest spike in wallet growth builds on a trend that has persisted since May 4, when daily new wallets dropped below 272,000 as BTC price struggled.
The metric has continued to increase since then, reaching the latest peak. Additionally, related on-chain metrics revealed similar growth trends. New addresses rose by 8.13%, active addresses increased by 8.79%, and zero balance addresses turning active spiked 11.35% over the seven-day period.
These figures signal growing retail engagement, as previously inactive or new users began funding their wallets during the price rally.
Short Squeeze Drives Further Acceleration
In parallel, liquidation data from Bitcoin’s derivatives markets provided insight into the rally’s structure. Over a 24-hour span, $343.99 million in total positions were liquidated.
Of this figure, $320.96 million originated from short positions, significantly outweighing the $23.04 million in long liquidations. Within the past 12 hours, $184.90 million in short positions were closed, confirming intense market pressure against bearish positions.
These liquidations reflect a classic short squeeze—when rising prices force traders betting against the asset to exit, often by buying back into the market.
Bitcoin Surpasses Amazon in Market Cap
Additionally, amid the rally, Bitcoin’s market capitalization rose above Amazon’s, according to SoSoValue. With BTC reaching a $2.040 trillion market cap, it narrowly surpassed Amazon’s $2.039 trillion, positioning Bitcoin as the fifth-largest asset globally.
This development came during a period of intensified retail activity and derivatives-driven price movement. Bitcoin now follows NVIDIA, Apple, Microsoft, and Gold in total market value.
At the time of writing, BTC trades just above $102,000, marking a 4.1% gain over the past 24 hours, with a 6.4% increase for the week and 10.4% over 14 days.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
