The data was done by Glassnode, a crypto market data aggregator. This has been the highest number of addresses ever since 2013.
January’s activities supersede the previous all-time high that was 21 million back at the end of 2017. Since that period, though, the unique addresses doing transactions have never gone below 10 million per month.
Contrary to expectation, the rise in new unique BTC (Bitcoin) addresses does not translate to active users on the BTC (Bitcoin) network. According to Glassnode, the number of BTC (Bitcoin) active users has been decreasing since January. There are clusters of addresses that are controlled by different network entities.
BTC (Bitcoin) trade volumes were the highest in January following the price surge to over $30, 000. And again, an all-time high of $42,000 before going a range-bound consolidation phase.
Beginning of the month, Kraken announced that its transactions volumes in January alone are more than they did in 2019. They have over $56 billion worth of assets being transacted on the platform.
The surging number of exchanges such as Kraken and Coinbase has led to outages. This has pushed the exchanges back to the drawing board to come up with strategies to prevent network failures.
Bitcoin bullish trend
The price of BTC (Bitcoin) has been bullish for some time now. It attained an all-time high in January, and currently, it is consolidating. There are higher chances that we may experience a BTC (Bitcoin) price breakout soon. This is according to CryptoQuant that does cryptoanalysis.
According to Ki Young Ju, the CEO of CryptoQuant, more than 15000 BTC (Bitcoin) is withdrawn from Coinbase Pro. This indicates that institutional investors are most likely in the picture. Previous BTC (Bitcoin) rallies have followed a similar trend, which signals that BTC (Bitcoin) may protect $33K in the short-term.
Even though retail investors contribute a considerable amount to the rally, institutional investors and corporate buyers are now active in the market. Most of them are using BTC (Bitcoin) as value storage for the long-term. Statistics show that over 60% of BTC (Bitcoin) supply is for the long-term.
The trends suggest that a significant amount of BTC (Bitcoin) is held by a few people, and they are most likely institutional investors. There has been an increasing number of whales who would have alternatively invested in traditional markets. According to Glassnode, 75% of BTC (Bitcoin) is controlled by 2% of the network. Miners account for about 10%, exchanges 13%, and whales 19% of the BTC (Bitcoin) supply. Institutional investors account for 31% of the BTC (Bitcoin) supply, while retail investors are at 23%of supply. The amount of BTC (Bitcoin) held by small scale entities has increased progressively with time. There are just 100 BTC (Bitcoin) addresses that account for 350,000 BTC ($11 billion) in January.
With the uncertainties of the market due to the Covid-19 pandemic, institutional investors are certainly rising. As people learn how cryptos work, they are more willing to embrace and diversify their investments. The high performance by cryptos is a magnetic factor in bringing more investors on board.