Bitcoin’s Drop Is Not a Concern
Despite its recent price decline, bitcoin charted new heights in another area. According to Glassnode, there are now 38.76 million BTC wallets containing some amount of the primary cryptocurrency. It took exactly seven months to beat the previous record of 38.7 million non-zero addresses registered on April 23.
The number of #Bitcoin addresses with a non-zero balance has reached a new all-time high of 38.76 million addresses.
The previous high of 38.7 million was set seven months ago on April 23rd, taking 213 days to fully recover.
Live chart: https://t.co/jbyYVmnwcH pic.twitter.com/Fxa9MMwhaW
— glassnode (@glassnode) November 23, 2021
Some of the reasons behind this increase might be the developments that bitcoin passed through during the last couple of months. It seems like the positive trend started at the beginning of October, shortly after the SEC and the Federal Reserve said the US won’t impose restrictions on the cryptocurrency industry.
The largest country by landmass and an economic rival of the US – Russia – also disclosed it has no intentions to implement a China-style crypto ban. President Vladimir Putin even predicted that digital assets could one day serve as a medium of exchange and cross-border payments.
Another significant advancement happened on October 19 when the ProShares Bitcoin Strategy futures-backed ETF, ticked BITO, saw the light of day. It started trading on the New York Stock Exchange, and thus it became the first such product ever to exist in the US. A few days later, the leading digital asset broke its previous all-time high price and reached almost $65,000.
During the first 17 days of November, bitcoin did not fall under $60,000. On the 10th, it even hit another ATH of nearly $69,000. However, the asset’s price started declining in the last couple of days, and currently, it trades at around $57,000.
Nevertheless, its adoption curve continues with numerous companies adopting BTC as a payments method. Additionally, bitcoin became a legal tender in El Salvador in September and reports suggest that locals have now opened millions of BTC accounts.
BTC Is on a Bullish Mode
According to a different chart presented by the financial market data – Santiment – bitcoin’s supply continues moving away from exchanges. That might be an indication that BTC whales and long-term investors have been transferring the digital asset to external cold wallets.
By moving away from exchanges, they could create a supply shortage to reduce the risks of sell-offs, which could also drive the price higher. In addition, USDT also remains high on trading venues, signaling an enhanced buy power.
Santiment Charts, Source: Santiment