Active Bitcoin Addresses Hit the Highest Level in Three Months

Amid a sharp price jump, Bitcoin, the world’s most dominant digital currency, has witnessed a spike in address activity during the past few days. According to Glassnode, an on-chain analytics platform, the total number of active BTC addresses (7-day Moving Average) touched 55,817 on 13 September 2022, which is the highest level in three months.

The overall number of active Bitcoin addresses has climbed significantly in the last seven days as the digital asset spiked by over 12% in the mentioned period. With a market cap of more than $425 billion, BTC now accounts for over 40% of the overall value of cryptocurrencies.

In terms of weekly performance, BTC has remained the best performer among the top five digital assets. Not only Bitcoin witnessed a jump in price, but its network activity including profitable BTC supply and mining rate has also showed improvements in the past few days.

Dormant Bitcoin supply that was last active nearly 10 years ago touched an all-time high of 2.51 million on Tuesday.

Bitcoin Supply

The latest weekly on-chain analysis report from Glassnode shows that an uptick in profit-taking was observed during the previous BTC rally between June 2022 and August 2022.

“With Bitcoin trading around 72.5% below the Nov 2021 ATH this week, the market has many similarities to the latest phase of the 2018-19 bear market. The recent bear market rally sold off from $24.5k down to below $18.5k, plunging a significant volume of short-term holder supply back into an unrealized loss,” Glassnode noted.

“All in all, the primary factors influencing the current market structure appear to be these short-term holders, who are jostling for the best entry price, and what little profit is available to take. The sensitivity and conviction of these investors within the volatile macroeconomic environment is a key factor in near-term market direction. Long-Term Holders have experienced a significant wash-out already and generally shift towards keeping coins dormant during these phases,” the report added.