Bitcoin is currently going through a turbulent period with a substantial correction in its price. The crypto asset dropped by almost 5% on Monday and reached a low of $55,600. While its price action has remained unstable in the last few days, the on-chain activity has increased significantly.
A total of 38.76 million Bitcoin addresses now have non-zero balances, which is the highest level on record. In contrast, long-term holders of the world’s most valuable digital asset have reduced their spending and started adding to their positions despite market volatility.
Moreover, the Bitcoin exchange supply ratio is declining continuously. BTC whales are transferring the digital currency to crypto wallets in an effort to create a supply shortage to drive the price higher.
“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. While price stays pinned below new highs and sentiment remains scattered, Bitcoin’s stakeholders are actively adjusting to new market information,” Glassnode highlighted in its recent report.
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Finance Magnates reported a significant drop in the overall crypto market dominance of Bitcoin yesterday. While the digital currency dropped below the $56,000 price level, its market cap stayed above the $1 trillion level. According to the crypto analytics platform, Santiment, the latest shift of Bitcoin supply from digital exchanges has reduced the risk of a major Bitcoin sell-off.
“Bitcoin has sunk -5.5% in the past 24 hours and is on the verge of dropping below $56k once again. Despite this, BTC’s supply continues moving away from exchanges, lowering the selloff risk. USDT also remains high on exchanges, indicating high buy power,” Santiment mentioned.
The total market cap of cryptocurrency assets held the level of $2.5 trillion on Tuesday despite the latest market correction.