In February, the number of addresses with a non-zero BTC balance hit an all-time high, signalling an optimistic outlook for Bitcoin.
Furthermore, wallets with a positive BTC balance are holding their funds at an increasing rate. According to data from on-chain analytics firm Glassnode, the number of bitcoins in circulation last moved between three and five years ago, peaking at just over 2.8 million coins. The number of addresses having a non-zero balance increased fast in 2019 and 2020 until the middle of 2021, when it looked to have plateaued at over 35 million addresses. According to Glassnode, from the beginning of 2022, growth in this figure has increased, resulting in a new ATH of 40,276,163.
The sudden increase in BTC supply, which was last active three to five years ago, coincides with the end of the previous extended bull market at the beginning of 2018. On Feb. 28, Glassnode disclosed that 817,445 of the non-zero balance addresses have at least one entire BTC, a 10-month high.
Supply-side dynamics in Bitcoin have provided a number of fascinating signs this month. Because it has not traded in a long time, FSInsight calculated that 75% of the BTC circulating supply was illiquid on February 9. According to the financial research firm’s report, the position is classified as a “powder keg” that is ready to blow as soon as a moderate amount of BTC is purchased on the market.
It’s a wrap for this story.