The biggest cryptocurrency in the world, BTC saw a significant price fall following last week’s BTC halving event. At the time of writing, Bitcoin had a market capitalization of $1.238 trillion and was trading at $62,878. Despite the price volatility, on-chain statistics indicate that investors are returning to Bitcoin, as evidenced by the fast-increasing number of new non-zero wallets.
Non-Zero Bitcoin Wallets Are Increasing
The number of BTC wallets with holdings is growing rapidly, despite the erratic swings in Bitcoin’s market value. This trend suggests a growing confidence in Bitcoin as a long-term store of value, with investors accumulating holdings regardless of short-term price movements. This suggests that despite changes in its value, people are still interested in and using Bitcoin.
In contrast, the growth trajectory for wallets holding altcoins, like Dogecoin, has diverged significantly. After experiencing surges in activity earlier this year, interest appears to have plateaued. Interestingly, Cardano stands out as one of the few networks witnessing a decline in active wallets, suggesting a shift in user behavior within its ecosystem. This trend suggests that investors are turning to Bitcoin rather than other cryptocurrencies as a haven.
A recent analysis by Fidelity Digital Assets, released on Monday, revealed a significant rise in the number of Bitcoin wallets holding $1,000 or more since the start of 2024. This trend indicates a growing interest in Bitcoin, particularly among smaller investors accumulating holdings over time. The data shows that this category has increased by a significant 20%.
Smaller addresses have been accumulating over time, and on March 13, they reached a record high of 10.6 million. Compared to the 5.3 million reported in 2023, this number represents a notable increase of 101% in just one year.
In parallel, fears have surfaced among cryptocurrency traders as Bitcoin’s price sinks to as low as $62.8K. Due to this price decline, social media sites have seen a discernible decline in purchase calls while sell calls are increasing at a faster pace.
Such feeling, typified by FUD (fear, uncertainty, and doubt), is often a sign of a change in the market’s dynamics. But as traders adjust their holdings and tactics in reaction to changing market conditions, it also suggests possible chances for a market rebound.
Bitcoin Whale Activity Drops
The amount of BTC whale activity has decreased while the quantity of small wallets containing Bitcoin has increased. Since March 14, there has been a noticeable decrease in Bitcoin whale activity, according to cryptocurrency expert Ali Martinez. Martinez posits that a rebound in whale transactions may function as the impetus for an increase in Bitcoin values.
Since March 14, there’s been a noticeable dip in #Bitcoin whale activity. A surge in whale transactions could be the spark needed to boost $BTC prices! pic.twitter.com/hd6fwpp9Gp
— Ali (@ali_charts) April 27, 2024
