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As became known thanks to data from Santiment, the number of Bitcoin in nonempty wallets has reached a new all-time high above 58.45 million. The flagship cryptocurrency has seen network activity grow with this all-time high. In addition, the number of Bitcoin on known exchange wallets has fallen to the lowest level since December 2017. As Santiment itself notes, adoption is still rising, as is offline storage.
Bitcoin sees adoption boom amid market turbulence
The increase in nonempty wallets over the past six months amounted to 1.69 million, which in relative terms equals 3%, while the number of Bitcoin on exchange wallets has fallen to 1.17 million.
How this will affect the price of Bitcoin remains to be seen, but as for now, it mostly depends directly on fundamental factors such as macroeconomics, oil prices and the strength of the dollar, to which the cryptocurrency is tied as never before.
However, on the crypto market there exists a consensus opinion that growth in network activity and adoption contributes to and often anticipates price increases of assets; therefore, this all-time high is an excellent support for Bitcoin’s fundamental value.
When market cataclysms calm down and return to normal, it can be expected that with such a foundation, the Bitcoin price will experience a smaller number of shocks and become less volatile, and more stable.
At the same time, declining exchange balances are often interpreted as coins moving into long-term storage, reducing immediate selling pressure on the market and signaling that holders may be preparing for a longer investment horizon.