Bitcoin is still close to its peak levels from the past 18 months, exceeding both its bear market trading range and important resistance levels. However, a recent correction of more than 3% pushed the asset to under $36,000 earlier today.
During this market-wide surge, Bitcoin’s wallets have experienced significant fluctuation in the past few weeks, contributing to the volatile market. An interesting trend has emerged with regard to Bitcoin wallet addresses.
According to crypto analytic firm Santiment’s latest analysis, numerous new smaller wallets holding less than 1 BTC have flooded the network.
🐟🐬🐳 #Bitcoin‘s wallets have fluctuated during this major market-wide surge. Tons of new smaller wallets with less than 1 $BTC have flooded the network. Meanwhile, the 1-100 tier has flattened out, and 100+ tier may be in the midst of some profit taking. https://t.co/va51CcexC1 pic.twitter.com/PNZtA9ir2U
— Santiment (@santimentfeed) November 17, 2023
Data suggest more than 1.5 million wallets of this cohort have sprung into existence in the past month.
During the same period, the 1-100 tier has stabilized, and there might be some profit-taking activity within the 100+ BTC tier.
Bitcoin wallets holding 1-100 BTC have lost 18 addresses over the past month alone. On the other hand, the 100+ BTC cohort has witnessed a reduction of 19 wallet addresses.
Data also suggest that 80% of Bitcoin addresses are currently on profit. This uptrend in profitable Bitcoin addresses may act as a motivating factor for holders to contemplate divesting their funds and take advantage of the market conditions.
While the profitability aspect could impact market dynamics and influence trading decisions among Bitcoin holders, the on-chain metrics remain bullish.
Bitcoin transaction count, for one, was hovering near the recently established high of 703k, according to Bitinfocharts.
Meanwhile, the average Bitcoin transaction fee spiked yet again to $18.67, a level last seen earlier in May this year during the Ordinals frenzy.
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