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The number of Bitcoin wallet addresses holding non-zero balances could soon hit a record high, according to Glassnode data, following the latest price hike that saw the value of the world’s largest cryptocurrency jump nearly 40% this year. I have. new investor.
According to the crypto analytics firm, there were 43,525,546 Bitcoin addresses with non-zero balances on Feb. 2, an increase of about 300,000 compared to this time last month. Shortly after the collapse of one of the world’s largest cryptocurrency exchanges, FTX, last November, a record number of 43,759,663 non-zero addresses was recorded.
At the time, this sparked a movement to withdraw cryptocurrencies from exchanges, and many Bitcoin holders appear to have created self-custody wallets for the first time. However, due to the surrender following the price drop the following month, the number of Bitcoin wallets with non-zero addresses dropped rapidly, returning to pre-FTX collapse levels.
However, the recent recovery in non-zero address numbers has seen more investors come back into the Bitcoin market than they have left it, amid Bitcoin’s impressive rise since the start of the year. suggests that If the number of non-zero wallet addresses continues to grow at the pace of the past few weeks, it could hit new all-time highs by the end of the month or early March.
What does this mean for BTC?
Despite the 2022 bear market, the number of non-zero Bitcoin addresses continued to grow steadily. However, the pace of creation of new non-zero addresses has been much faster in past bull market cycles, such as the run-up to the peak of 2017 and he said late 2020 and early 2021.
The lack of a sustained rapid increase in the number of non-zero wallets suggests that new investors are entering the market to push the price higher, so Bitcoin has a long way to go to gain more ground. Bitcoin bulls therefore believe that the recent rise in non-zero address numbers represents the beginning of a sustained increase and the prospect that Bitcoin is in the early stages of a new bull market is new. We hope to continue to attract buyers.
In fact, multiple individual on-chain leading indicators are all showing bullish signs. As explained in a recent article, 7 of the 8 key on-chain and technical indicators tracked by crypto analytics firm Glassnode’s “Recovering from a Bitcoin Bear” indicate that the next Bitcoin bull market is here. indicates that there is a possibility Glassnode’s dashboard shows whether Bitcoin is trading above major pricing models, whether network usage is gaining momentum, whether the market is recovering profitability, and whether Bitcoin assets denominated in US Dollars. analyze whether the balance of is in favor of long-term HODLers.
However, things could get bumpy for Bitcoin in the near future.Bitcoin initially rose following Wednesday’s Fed policy announcement, which was not as hawkish as feared, but a super-powerful just released in January. US employment statistics It has rekindled bets that the US economy may finally avoid a recession this year. This could mean the Fed raises interest rates for longer, which could trigger a short-term profit-taking sell-off in Bitcoin.