On-chain statistics for February show a positive attitude towards Bitcoin, as addresses with non-zero BTC balance reached an all-time high.
In addition, wallets with a positive BTC balance are increasingly holding their coins. The amount of BTC in circulation last hit a four-year high at just over 2.8 million coins between three and five years ago, according to data from network analytics firm Glassnode.
#Bitcoin $BTC Non-zero addresses just reached ATH 40,276,163 Previous ATH 40,275,801 observed Feb 5, 2022 View metric: https://t.co/VtoChZbLsa pic.twitter.com/hTnHlN9GeU— Glassnode alerts (@@ t.co/VtoChZbLsa pic.twitter.com/hTnHlN9GeUGlassnodealerts) February 27, 2022
The number of addresses with a non-zero balance increased dramatically during 2019 and 2020 until mid-2021, when growth stopped at about 35 million addresses. However, the growth of this indicator has increased dramatically since the beginning of 2022, which, according to Glassnode, has resulted in a new ATH of 40,276,163.
The sudden surge in BTC supply, which was last active three to five years ago, coincides with the peak of the last extended bull market in early 2018.
Glassnode reported that among the addresses with a non-zero balance, 817,445 of them have at least one whole BTC, which is a 10-month high on February 28.
Bitcoin supply dynamics last month provided some noteworthy indicators. FSInsight reported on Feb. 9 that 75% of BTC’s circulating assets were illiquid as they hadn’t moved for an extended period of time. A report from a financial research company describes the situation as a “powder keg” that is ready to explode as soon as a moderate amount of BTC is bought in the market.
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Political instability in Canada and Ukraine in February also shed more light on Bitcoin’s ability to remain censorship-proof. Some Canadians have adopted bitcoin to protect their funds from a freeze, while the Ukrainian government is now accepting bitcoin donations as tensions escalate in the region.
BTC is currently trading at $37,827, about 45% lower than on November 10 when ATH was $69,000, according to CoinGecko.