Bitcoin Addresses with Non-Zero Balance Could Soon Hit Record High – What This Means for BTC Price

Share This Post

A bodily Bitcoin pockets. Supply: Adobe

Based on Glassnode knowledge, the variety of Bitcoin pockets addresses holding a non-zero steadiness might quickly hit an all-time excessive, with the most recent value rally that has seen the worth of the world’s largest cryptocurrency soar almost 40% this yr seemingly drawing in new traders.

Based on the crypto analytics agency, there have been 43,525,546 Bitcoin addresses with a non-zero steadiness on the second of February, almost 300,000 up versus this time final month. The document excessive variety of non-zero addresses of 43,759,663 was hit within the instant aftermath of the collapse of what had previously been one of many world’s largest cryptocurrency exchanges FTX final November.  

On the time, this triggered a rush to withdraw crypto from exchanges, with many Bitcoin homeowners seemingly making a self-custody pockets for the primary time. Nevertheless, capitulation as costs fell over the course of the next month resulted in non-zero tackle Bitcoin pockets numbers shortly declining again to their pre-FTX collapse ranges.

However the latest restoration in non-zero tackle numbers means that, amid Bitcoin’s spectacular rally because the begin of the yr, traders are as soon as once more returning to the Bitcoin market in higher numbers than they’re leaving it. If the variety of non-zero pockets addresses continues rising on the tempo it has over the previous couple of weeks, a brand new all-time excessive could possibly be hit by the tip of the month/by early March.

What Does This Imply for BTC?

Regardless of the bear market of 2022, the variety of non-zero Bitcoin addresses continued to steadily rise. Nevertheless, in previous bull market cycles, equivalent to within the run-up to the 2017 peak and in late-2020/early-2021, the tempo of latest non-zero tackle creation has been a lot greater.

Within the absence of sustained speedy progress within the variety of non-zero wallets, a sign that new traders are getting into the market to pump costs, Bitcoin could wrestle to achieve additional floor. Bitcoin bulls will thus be hoping that the most recent rise in non-zero tackle numbers represents the beginning of a sustained improve, and that the prospect of Bitcoin being within the early levels of a brand new bull market will proceed attracting new patrons.

Certainly, a number of separate on-chain main indicators are all flashing bullish indicators. As mentioned in a recent article, seven out of eight key on-chain and technical indicators tracked by crypto analytics agency Glassnode’s “Recovering from a Bitcoin Bear” are actually signaling that the following Bitcoin bull market is likely to be right here. Glassnode’s dashboard analyses whether or not Bitcoin is buying and selling above key pricing fashions, whether or not or not community utilization momentum is rising, whether or not market profitability is returning and whether or not the steadiness of USD-denominated Bitcoin wealth is in favor of the long-term HODLers.

Nevertheless, issues could possibly be bumpy for Bitcoin within the close to future. Bitcoin initially rallied in wake of a not-as-hawkish-as-feared Fed coverage announcement on Wednesday, however a super-strong simply launched January US jobs report has rekindled bets that the US financial system could in the end keep away from recession this yr. That may imply the Fed lifting rates of interest greater for longer, a prospect that would set off some short-term profit-taking in Bitcoin.

Related Posts

Your Guide to Taking Action

PRESS RELEASEPrinted September 28, 2023 Picture Supply: On the...

Bitcoin, Ether edge up; Wall Street on edge amid government shutdown fears

Bitcoin was buying and selling above US$26,300 Thursday...

Looking Glass Labs Announces Share Consolidation

VANCOUVER, British Columbia, Sept. 27, 2023 ...