• According to Glassnode data, the number of Bitcoin wallet addresses holding a non-zero balance could soon hit an all-time high.
• The record high number of non-zero addresses was hit in the immediate aftermath of the collapse of FTX last November.
• If the number of non-zero wallet addresses continues rising at the pace it has over the last few weeks, a new all-time high could be hit by the end of the month/early March.
Bitcoin Addresses with Non-Zero Balance on Track for Record High
Recent Price Rally Seemingly Drawing New Investors
According to Glassnode data, the number of Bitcoin wallet addresses holding a non-zero balance could soon hit an all-time high, with the latest price rally that has seen the value of BTC jump nearly 40% this year seemingly drawing in new investors. At present there are 43,525,546 Bitcoin addresses with a non-zero balance, nearly 300,000 up versus this time last month.
Previous All-Time High Reached After FTX Collapse
The previous record high for Bitcoin wallet addresses holding a non-zero balance was reached in November 2020 after what had formerly been one of the world’s largest cryptocurrency exchanges FTX collapsed. This caused some BTC owners to create self custodial wallets for their coins and resulted in 43,759,663 non zero address wallets being created. However capitulation as prices fell over subsequent months saw numbers quickly decline back to pre FTX levels.
New Record High Could be Reached by End Of Month/Early March
The recent recovery in non zero address numbers suggests that amid BTC’s impressive rally since January 2021 investors are again returning to Bitcoin more than they are leaving it. If growth continues at its current pace then a new record high could be reached by early March 2021.
What Does This Mean For BTC?
In past bull market cycles such as 2017 and late 2020/early 2021 rapid growth in non zero address wallets usually indicated that new investors were entering to pump prices. Therefore if there isn’t sustained rapid growth then further ground may struggle to be gained for BTC prices due to lack of higher demand from larger investor groups.
Conclusion
Multiple separate on chain leading indicators suggest that Bitcoin is possibly entering a new bull market which will hopefully attract more buyers and result in increased demand for BTC causing prices to rise further still. In addition if numbers continue rising at current rate then we should expect them to reach another all time high before March 2021 ends