Bitcoin (BTC)'s rise to and above $40,000 has impacted several parts of its ecosystem, including the number of addresses holding the leading digital asset.
According to a tweet from crypto market research platform IntoTheBlock, the number of Bitcoin wallets with balances has exceeded the 50 million mark.
Bitcoin wallets with a balance of more than 50 million
The increase in Bitcoin addresses with a balance is a significant milestone, accounting for more than 17% growth year-to-date.
In addition to the growth of these Bitcoin addresses, the ecosystem also saw a significant increase in the amount of BTC held by wallets with 1,000 BTC or more. IntoTheBlock said the number recently reached its highest level since December 2022.
The increase in addresses and the amount of BTC held in wallets with 1,000 BTC or more comes as the leading digital asset rose above $42,000 for the first time in 19 months. At the time of writing, data from CoinMarketCap shows the asset trading at $41,500, up 6% in 24 hours and up 13% weekly.
Over 80% of Bitcoin holders in profit
Following the price surge, BTC dominance increased to 52.6% as the cryptocurrency outperformed the altcoin market. The asset's year-to-date gains have increased by 152%, and the crypto market's total capitalization has increased by more than 3% to levels last seen in May 2022. Currently, more than 80% of BTC holders are making profits.
It is worth noting that Bitcoin's recent surge triggered over $190 million in liquidations, including $150 million in short positions.
Optimism regarding the immediate approval of Bitcoin Exchange Traded Funds (ETF) was one of the main reasons for BTC's rise. The crypto community believes there is a greater chance that the US Securities and Exchange Commission (SEC) will approve the ETFs between January 5th and January 10th.
While some market analysts expect a significant BTC price correction in January after the SEC approved a spot Bitcoin ETF, others expect the crypto asset to continue rising until the upcoming halving. There is no certainty that BTC will see a correction in the next month, but since the asset has not seen a correction in about 100 days, the risk of a correction increases following the approvals.
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