The cryptocurrency market’s largest asset, Bitcoin (BTC), continues its consolidation after surpassing $26,500. The sustainability of this growth in the short term will depend on whether investors, both new and old, show strength based on the latest on-chain data.
Striking On-Chain Data for Bitcoin (BTC)
Data compiled and shared by prominent market analyst Ali Martinez reveals that the number of wallet addresses created on the Bitcoin network has reached an all-time high. The on-chain analysis platform Glassnode has confirmed that the number of wallet addresses holding at least 0.1 BTC has reached 4,486,752.
Experts emphasize the significance of the record number of wallet addresses created. Despite the availability of numerous cheaper altcoins and different investment options, people continue to show interest in the crypto king. The application of the world’s largest asset management company, BlackRock, to the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin Exchange-Traded Fund (ETF) has significantly contributed to the widespread adoption of the leading cryptocurrency.
Analyst Will Clemente from Reflexivity Research also highlighted that Bitcoin’s total daily transaction volume has surpassed the U.S. payment giant Visa. This milestone demonstrates that people are using Bitcoin as a layer for monetary value transfer. The two competing systems ahead of Bitcoin, according to the shared data, are the Automated Clearing House (ACH) and the payment system Fedwire.
Potential Impact of Positive Trend in On-Chain Data on Price
Bitcoin’s price has shown a consolidation trend in recent weeks and is currently in a cycle where many analysts believe a significant breakthrough could occur at any time. After recovering from recent losses, Bitcoin has managed to achieve a growth of 2.47% throughout the week.
The latest milestones reached on the chain indicate that after the upcoming block reward halving expected in April 2024, Bitcoin could experience even more ambitious growth in the short term, surpassing the $30,000 threshold and potentially making a breakthrough well above that level.
