The world’s largest cryptocurrency Bitcoin (BTC) has come under strong price correction recently after the Bitcoin halving event last week. As of press time, Bitcoin is trading at $62,878 with a market cap of $1.238 trillion. On-chain indicators suggest that despite this price volatility, investors are flocking back to Bitcoin with new non-zero wallets rising rapidly.
Bitcoin Non-Zero Wallets on The Rise
The total number of non-empty Bitcoin wallets is observed to be rapidly growing despite the choppy price movements in the market. This indicates continued interest and engagement with Bitcoin, even amidst fluctuations in its value.
However, the wallets holding altcoins such as Dogecoin have shown a different trajectory, with their growth flattening after experiencing significant increases earlier in the year. Notably, the Cardano network stands out as one of the few to witness a drop in active wallets, suggesting a shift in user activity within the ecosystem. This development shows that investors are find a safe haven in Bitcoin instead of altcoins.
A recent report unveiled by Fidelity Digital Assets on Monday revealed a notable uptick in the number of Bitcoin wallets holding $1,000 or more since the start of 2024. The data indicates a substantial 20% increase in this category.
The trend of accumulation among smaller addresses has been steadily growing, reaching a record high of 10.6 million on March 13. This figure marks a significant surge from the 5.3 million recorded in 2023, representing an impressive 101% rise over the past year.
In parallel, concerns have emerged among cryptocurrency traders as Bitcoin’s price dips to as low as $62.8K. This downward movement in price has led to a noticeable decrease in buy calls across social media platforms, while sell calls are on the rise at an increased rate.
The prevalence of such sentiment, characterized by fear, uncertainty, and doubt (FUD), often indicates a shift in market dynamics. However, it also signals potential opportunities for market recovery as traders assess their positions and strategies in response to evolving market conditions
Bitcoin Whale Activity Drops
While the number of small wallets holding Bitcoin has been on the rise, the Bitcoin whale activity has been on a decline. According to crypto analyst Ali Martinez, there has been a discernible decline in Bitcoin whale activity since March 14. Martinez suggests that a resurgence in whale transactions could potentially serve as the catalyst to propel Bitcoin prices upward.
Since March 14, there’s been a noticeable dip in #Bitcoin whale activity. A surge in whale transactions could be the spark needed to boost $BTC prices! pic.twitter.com/hd6fwpp9Gp
— Ali (@ali_charts) April 27, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
