Non-zero BTC addresses hit all-time high of 40 million

On-chain stats through February have suggested positive sentiment for Bitcoin as addresses with BTC non-zero balances hit an all-time high.

Moreover, those wallets with positive BTC balance are increasingly holding onto their coins. The amount of BTC last in circulation between three and five years ago hit a four-year high of just over 2.8 million coins, according to data from an on-chain analytics firm. glass node

The number of addresses with a non-zero balance increased sharply in 2019 and 2020 until mid-2021, when growth appeared to level off at around 35 million addresses. However, the growth in this metric has surged since the beginning of 2022, leading to a new ATH of 40,276,163 according to Glassnode.

The sudden spike in BTC supply that was last active three to five years ago coincides with the peak of the last extended bull market in early 2018.

Among the addresses with a non-zero balance, Glassnode reported that 817,445 of them have at least one whole BTC, a 10-month high on Feb. 28.

Supply-side dynamics in Bitcoin have yielded several metrics over the past month. FSInsight reported on February 9 that 75% of the circulating BTC supply was illiquid because it had not been moved for an extended period of time. The report from the financial research firm described the situation as a “powder keg” that is about to explode once a modest amount of BTC is bought in the market.

Related: Bitcoin Fails to Beat Resistance as $40K Stays Out of Reach at Weekly Close

Political turbulence in Canada and Ukraine in February has also shed more light on Bitcoin’s ability to remain censorship-resistant. Some Canadians have adopted Bitcoin to avoid having their funds frozen, while the Ukrainian government is now accepting BTC donations as tensions escalate in the region.

BTC is currently trading at $37,827, down about 45% from November 10, ATH of $69,000 according to CoinGecko.

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