On-chain data shows the number of Bitcoin wallets with a non-zero balance has set a new all-time high above 40 million.
Number Of Bitcoin Wallets With Non-Zero Balance Hits New ATH
As per the latest weekly report from Glassnode, the number of BTC wallets that hold a non-zero amount of coins has now reached a new ATH of around 40.16 million.
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The “number of wallets with a non-zero balance” is an indicator that looks at each address on the chain and tells us how many of them currently hold some amount of Bitcoin.
When the value of this metric goes down, it means investors have started to purge their wallets as they pull out of the market. This trend may be seen following a crash in the price of the crypto.
On the other hand, when the indicator moves up, it implies more investors are entering the market as they are filling up fresh wallets with some amount.
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Now, here is a chart that shows how the number of BTC wallets with a non-zero balance has changed over the past five years:
The value of the indicator seems to be continuing on an uptrend despite the crash | Source: The Glassnode Week Onchain - Week 5, 2022
As you can see in the above graph, the number of Bitcoin addresses that are holding some value has been going up since a while now, and has now set a new ATH above 40 million.
This uptrend in the indicator has continued despite the crash in the price of the crypto since it set the $69k all-time high.
This trend is different from what was observed following the 2017 and May 2021 tops. There, as the price crashed down, a wallet purge also took place as investors exited the Bitcoin market.
2017 especially saw a very large scale exit of such wallets, while 2021’s purge was relatively smaller in comparison.
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It seems the current trend is more similar to the 2019 bear market where the metric has continued to go up despite the price tumbling down.
This could be a bullish sign for the price of Bitcoin in the long term as holders not leaving the market despite a three month downtrend shows they hold more conviction in the crypto.
At the time of writing, Bitcoin’s price floats around $38.3k, up 5% in the last seven days. The below chart shows the trend in the price of BTC over the last five days.
BTC's price seems to have held steady above the $38k mark in the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com