Bitcoin Addresses With Non-Zero Balances Hit An All-Time High

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Bitcoin (BTC) has been undergoing a correctional phase over the past week. however, it has continued to hover around the $60,000 resistance level despite the strong pressure on the world’s most valuable cryptocurrency. Bitcoin’s on-chain fundamentals have shown a major sign of strength and accumulation.

According to on-chain data provider, Glassnode, the number of non-zero balance Bitcoin addresses has hit a record number of 38.76 million. This supersedes the previous record of 38.7 million attained on April 23 this year.

Also, another data provider Santiment noted that the Bitcoin supply is moving off-exchanges, cutting down the sell-off risks. This trend has continued into the week, despite the crypto asset trading under pressure.

USDT On Exchanges Is Also High

Additionally, Santiment also revealed that the supply of USDT on exchanges increased over the past few days, indicating a strong buying power.

According to the observation, BTC whales are actively moving their Bitcoin holdings to crypto wallets. The plan is to drive the price higher by creating a supply shortage.

Although BTC has stayed below new highs, stakeholders in the crypto asset are seriously “adjusting to new market information,” according to Glassnode.

The crypto market dominance of Bitcoin has also dropped noticeably. The crypto asset has dropped to around $57,000 while its market cap has managed to stay slightly above $1 trillion.

On a general note, the total market cap of all crypto assets held at the level of $2.5 trillion as of the time of writing.

Bitcoin’s short-term holders are also selling during the recent price correction. They have been capitulating at the lows while taking profits at the highs. And according to Glassnode, Bitcoin’s supply has experienced a 15% drop and is presently in the bull/bear transition zone.

Short-term Traders Are Most Responsive To Price Changes

Glassnode also indicated that short-term Bitcoin holders are the most active when it comes to responses to price action.

This is because the short-term holders have a lower degree of conviction in the asset. Also, Glassnode noted that the short-term holders have a higher time preference as well as a higher relative cost-basis. Additionally, Bitcoin’s funding rates on Binance have neutralized during the broader market correction. And according to Santiment, this trend usually results in a bounceback.

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