Bitcoin Bullish Indicator: Exchange Balance at 5-Year Lows, Non-Zero Addresses Reach All-Time Highs

The cryptocurrency market has recorded a lot of turbulence this year, and even the most valuable cryptocurrency by market cap has not been spared by the bears.

With the price of bitcoin, fluctuating consistently, and trading volume, tumbling from time to time, negative sentiments from traders and investors are expected.

However, on-chain metrics seem to suggest that the opposite is the case at this time. According to data shared by Glassnode, a leading on-chain platform, Bitcoin investors have stayed put throughout the market chaos.

Notably, the Bitcoin balance on cryptocurrency exchanges has dropped significantly over the past few years. According to Glassnode’s data, Bitcoin balances on exchanges have declined, reaching a 5-year low value. The value is estimated to sit at 2,280,636.886 Bitcoins, valued at $ at this time.

As exchange balances drop, the number of Bitcoins accumulated by investors continues to increase. It is worth noting that continuous accumulations like this are typically done by long-term holders.

Going forward, the constant decline in exchange balance also speaks to the fact that existing coins on exchanges are declining. As such, demand might be on the rise. while supply continues to drop. In the long term, this could potentially influence market sentiments, and drive up Bitcoin’s price even higher.

Is Bitcoin moving past an intensely volatile state?

Interestingly, non-zero addresses have continued to skyrocket. The number of non-zero addresses, according to on-chain metrics, has reached an all-time high of 47,961,738. This comes not long after the previous all-time high of 47,948,569 was observed at the start of the year. As such, it is clear to see that within a short period, 13,169 Bitcoin holders increased their holdings by a sizable margin.

Bitcoin miners are also not slowing down on the accumulation process. With miners being a major driver of Bitcoin’s price, their actions remain a significant pointer to Bitcoin’s potential long-term move. The Bitcoin miners’ balance as shared by Glassnode, has recorded a 1-month high of 1,829,644.680.

On the other hand, Bitcoin is trading for $29,395. The apex cryptocurrency has shaken off weekly losses to now trade in the green zone. While selling pressure increased over the week, Bitcoin bulls are still attempting to reclaim the $30,000 price mark.

Meanwhile, speaking on the continuous volatility in the market, Glassnode, in its recent on-chain newsletter made some notable statements. According to its assertion, Bitcoin’s volatility levels might be declining rapidly.

As the newsletter read;

“Bitcoin prices are infamously volatile, however, the market is currently experiencing an extreme volatility compression. Whilst options markets reflect this, it suggests that Bitcoin is either no longer infamously volatile… or volatility could be mispriced.”

Best Crypto Exchange for Everyone:

• Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
• 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
• Copy top-performing traders in real time, automatically.
• Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started