Key Takeaways

  • The number of Bitcoin wallets with a non-zero balance is at an all-time high of 45.388 million.
  • However, activity on the Bitcoin blockchain has weakened slightly in recent days.
  • Bulls should not panic as most analysts expect demand for Bitcoin to remain strong.

Surge in Non-Zero Balance Addresses

The number of Bitcoin wallets holding a non-zero BTC balance continues to skyrocket, hitting a record high of 45.388 million on Sunday according to data from crypto analytics firm Glassnode. This marks an increase of over 2 million since the start of 2022 and is the fastest rate at which the Bitcoin network has added non-zero wallet addresses since early 2021. This implies that more investors are entering the Bitcoin market and demand for it is growing steadily.

Weakness in On-chain Metrics

However, some other key metrics pertaining to activity on the Bitcoin blockchain have weakened in the last few days due to Bitcoin’s failure to test $30,000 last week. The seven-day moving average of active addresses interacting with the Bitcoin network decreased to its lowest level since late January while new address interaction and transaction numbers also fell to one month lows. This could suggest a slight weakening in demand for BTC.

Bulls Shouldn’t Panic

Despite this slight weakening in metrics, they remain at elevated levels compared to where they were for much of 2021 given that prices have held above $25,000. Analysts still expect dips in price to be bought up and overall sentiment remains positive due to fundamental narratives driving up prices from mid March lows under $20,000.

Conclusion

The surge in non zero balance addresses suggests that more investors are stepping into the Bitcoin market and demand for it is likely here to stay despite some weakness seen recently in on chain metrics like active address interaction and new address interaction numbers falling below one month lows . Nonetheless , bulls need not worry as analysts remain largely optimistic about BTC prospects .