It’s the positive sentiment for Bitcoin price as addresses with a non-zero balance reached ATH
According to Santiment, the supply-side dynamics of the Bitcoin network continue to demonstrate strong adoption as there are now more addresses with a positive BTC balance than ever before. It happened at the time Bitcoin price was changing hands at $37,933.
BTC/USD 4-hour chart | Source: TradingView
Non-zero BTC addresses hit an all-time high of 40 million at Bitcoin price below $38,000
Wallets with positive BTC balances are increasingly hoarding funds. Accordingly, the circulating supply of BTC last moved 3 to 5 years ago reaching a 4-year high of just over 2.8 million BTC.
“Bitcoin BTC Number of Non-Zero Addresses just reached an ATH of 40,276,163. Previous ATH of 40,275,801 was observed on 05 February 2022”, Santiment stated.
Source: Glassnode
The number of addresses with non-zero balances grows strongly in 2019 and 2020 through mid-2021 when growth looks steady at around 35 million addresses. However, growth in this metric has spiked since early 2022, resulting in a new ATH of 40,276,163.
The last BTC supply spike active 3 to 5 years ago coincided with the peak of the previous prolonged bull market in early 2018.
Among addresses with non-zero balances, Glassnode reported that 817,445 of them have at least one BTC in their entirety, a 10-month high on Feb.
Supply-side momentum in Bitcoin has provided some notable indicators over the past month. FSInsight reported on February 9 that 75% of BTC circulating supply is illiquid because it hasn’t moved in a long time. The financial research firm’s report described the situation as like a “bucket of powder” ready to explode as soon as a moderate amount of BTC was bought in the market.
In February, political turmoil in Canada and Ukraine has shed more light on Bitcoin’s ability to maintain censorship. Some Canadians have been using Bitcoin to protect their funds from freezing, while the Ukrainian government is now accepting BTC donations as tensions escalate in the region.
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