Bitcoin Dips Below $40,000, Despite 30% Increase in Active Addresses

Data from on-chain analysis firm Glassnode shows there has been a 30 percent increase in active Bitcoin (BTC) addresses. However, BTC has only risen above the US$40,000 mark a handful of times.

#Bitcoin has seen a resurgence in Active Entities over the past week, rising by 30% from 250k to 325k active entities per day.

This degree of activity was sustained in July 2020 when $BTC prices were around $11.3k in Q2-2020.

Live Chart: https://t.co/jsxqAS9wdk pic.twitter.com/TWtrtLvneh

— glassnode (@glassnode) July 30, 2021

Bitcoin Gains Some Driving Power

The Bitcoin network (BTC) has recently seen a notable increase in active addresses per day. According to Glassnode, in one week active addresses increased from 250,000 to 325,000.

This is the biggest surge recorded since the number of active Bitcoin wallets dropped 41 percent from 425,000 in January 2021 to below 245,000 addresses in early July.

Alongside a significant turnaround in active Bitcoin users, a one-year record volume of BTC outflows has been hit, comparable to peak outflows seen in November 2020. This is a bullish signal indicating that BTC has been bought on exchanges and is being moved to wallets for safekeeping.

Considering all the BTC that has moved to wallets, it is also important to remember that over 50 percent of bitcoin has not moved in a year.

If you liked Bitcoin at $64,000 then you should love it at $40,000.

— Dan Held (@danheld) August 2, 2021

Bitcoin (BTC) has only touched the US$40,000 mark a handful of times since its $63,000 high in April, and has since been ranging between $32,000 and $38,000. Recent rumours of Amazon accepting bitcoin, along with the positive talks between Jack Dorsey and Elon Musk at the B word Conference, spiked it up to $42,000 but to no avail, as the price dropped back down under $40,000.

Bitcoin Millionaires Hit New High

During this time, bitcoin millionaires have also been accumulating. Bitcoin held on addresses storing 100-to-10,000 BTC hit 9.23 million bitcoin (US$364 billion) as of August 1, which is a new all-time high for this group of investors.

In the last four weeks, these addresses have accumulated approximately 170,000 more BTC. This staggering pace was last matched in late December 2020, right before a massive bull run kicked off in 2021 where prices jumped from $29.0k to $40.8k in the year’s opening week.

Santiment data analytics

According to cryptocurrency data-tracking firm BitInfoCharts, there are now over 80,000 BTC millionaires, up from 25,000 just three months ago.