Bitcoin Price Soars Past $104K as New Wallets Surge in Record Numbers

The Bitcoin price has jumped to new heights this week, blasting past the $104,000 mark as investor activity spikes. With a wave of new wallets flooding the market, signs point to a growing return of retail and institutional interest in the world’s top cryptocurrency.

Bitcoin started climbing on May 6, bouncing back from a slow start to the month. By May 9, the Bitcoin price hit $103,114—its highest in months. That’s up from $94,000 just a few days earlier. The surge came alongside a record-breaking 344,620 new wallets created on May 8, the most in a single day so far in 2025.

Bitcoin Price Rally Fueled by Wallet Growth and Network Activity

It all started around May 4. As the Bitcoin price began to climb, new wallets followed. Wallet creation is often a reliable sign of fresh adoption. More people are entering the market—some for the first time, others returning after sitting on the sidelines.

This latest surge reflects more than just price hype. According to Santiment, Bitcoin network activity has ramped up fast. The following increases were reported over the past seven days:

• New addresses: +8.13%

• Active users: +8.79%

• Zero-balance wallets reactivated: +11.35%

As the Bitcoin price rose, so did engagement. More wallets are being funded, and previously inactive users are jumping back in. That kind of network behavior often hints at a broadening base of users, not just traders.

Network Metrics Signal Increased Participation

Santiment’s data isn’t just numbers. It paints a picture of a market heating up across multiple layers. New addresses mean fresh users, often retail. A rise in active users indicates stronger daily use and movement of BTC. And when zero-balance wallets go active? That suggests longtime holders—or skeptics—are back in the game.

These types of surges don’t happen in isolation. They reflect the wider excitement driving the Bitcoin price upward.

Liquidations Add Fuel to Bitcoin’s Price Climb

Behind the scenes, another factor pushed Bitcoin even higher: liquidations.

Data from Coinglass shows that nearly $344 million in derivatives positions were wiped out within just 24 hours. Of that, $321 million came from short sellers—traders betting Bitcoin would fall.

When prices rise too fast, short sellers scramble to cover their losses. This buying pressure, known as a short squeeze, forces prices up even more. That’s exactly what seems to have happened this week.

Spot Bitcoin ETFs See Major Inflows Amid Market Optimism

Institutions didn’t stay on the sidelines either. Spot Bitcoin ETFs drew big inflows, a clear sign that Wall Street isn’t ignoring the rally.

Farside Investors reported a $142.3 million inflow into Bitcoin ETFs on May 7. Notable contributions included:

And the next day? IBIT led the charge with an additional $69 million in inflows.

These kinds of institutional moves add credibility to the momentum. They also bring more liquidity and potential price support for future rallies.

What This Means for Investors Going Forward

The rise in new wallets and ETF flows shows that interest in Bitcoin isn’t fading—it’s accelerating.

Still, volatility remains. While the Bitcoin price may keep climbing, sharp corrections can follow. Investors should stay alert and think long-term, especially as more institutions and users pour in.

Conclusion

Bitcoin’s latest rally—powered by record-setting wallet growth, increased network activity, and institutional buying—is reshaping the market landscape. With the Bitcoin price soaring past $104K, all eyes are on what comes next. Whether this is the beginning of a new bull phase or just a strong bounce, one thing’s clear: Bitcoin is back in the spotlight.