Non-Zero Bitcoin Addresses Hit an All-time High
According to the latest numbers in the market, Bitcoin has currently fallen almost 45% from its all-time high value, but on-chain metrics are quite strong, which are an indication of the increasing adoption of the pioneer cryptocurrency. On-chain data obtained for the month of February showed that Bitcoin has managed to garner positive sentiment in the market, as addresses that have a non-zero balance of the crypto reached an all-time high number. Another important thing to note is that crypto addresses that boast positive Bitcoin balances are turning into HODLers, which means that they are not willing to sell their coins.
According to data from Glassnode, the circulating supply of Bitcoin has recently reached a four-year high, as it has now hit 2.8 million coins in total. Between 2019 and 2020, there had been a strong surge in the number of wallet addresses that had positive bitcoin balances. But, this trend had come to a halt in 2021 when the market had turned bullish. Halfway in 2021, this number had become stagnant after it reached 35 million addresses. But, the start of this year saw this number begin to climb once more. Now, the number of non-zero bitcoin addresses has reached an impressive high of 40,276,163.
The data from Glassnode also shows that of the total non-zero Bitcoin addresses, there are approximately 817,445 of those that contain more than one bitcoin. This figure is considered a ten-month high. These statistics are important because Bitcoin’s supply has provided a great deal of insight into the price movements of the crypto in the market. On February 9th, a report was put forth by FSInsight, which stated that Bitcoin had an illiquid circulating supply. There had been no significant changes in the primary cryptocurrency supply in an extended period. It was further mentioned in the report that Bitcoin’s situation was kind of like a ‘powder keg’.
This meant that the price of Bitcoin would blow up, as soon as a significant amount of BTC is bought from the market. Recently, crypto has also found itself in the midst of geopolitical tensions in different countries around the world. First, it was because of the Canadian’s government decision to invoke the Emergencies Act for dealing with Freedom Convoy protests. According to the crypto community, the protestors could use bitcoin to avoid any kind of censorship and they had done so. This had pushed the Canadian government to sanction crypto wallets.
Therefore, many had suggested that people donating to the protest start using self-custodial wallets to keep their digital assets safe, as they would be free from any interference of third parties. Now, Bitcoin is once more at the center because of the Russia and Ukraine conflict, as reports indicate that Russia could use BTC for getting around the sanctions being imposed by Western nations. In fact, Ukraine has also called for crypto donations for helping the defense movement. BTC already reported a surge of 10% on Monday after additional sanctions were imposed by the US government on the Russian central bank.