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: Bitcoin Non-Zero Addresses Hit Record High: New Investors Could Pump Price

• The number of Bitcoin wallet addresses holding a non-zero balance of the world’s most popular cryptocurrency by market capitalization hit a new record high this week.
• This surge in non-zero address numbers has been led by a surge in wallets holding a small amount of BTC, indicating the arrival of new investors.
• The recent rise in non-zero wallet address numbers is being accompanied by a rotation in Bitcoin ownership away from larger investors.

New Record High for Non-Zero Bitcoin Addresses

The number of Bitcoin wallet addresses holding a non-zero balance of the world’s first, most popular and largest cryptocurrency by market capitalization hit a new record high this week, suggesting the Bitcoin network’s global adoption continues to press ahead despite 2022’s challenging bear market and a tough global economic outlook for 2023. According to data presented by crypto analytics firm Glassnode, the number of Bitcoin addresses with a non-zero balance rose above 43.8 million on Wednesday the 8th of January for the first time. That took the number of addresses above the previous record high printed back in mid-November 2022 of 43.76 million.

FTX Collapse Triggered Shift Towards Crypto Self Custody

Back in November, the collapse of what had formerly been one of the largest cryptocurrency exchanges in the world FTX, which resulted in customers losing access to billions in funds, triggered a shift towards crypto self-custody. Investors rushed to get their Bitcoin off exchanges, triggering a surge in address numbers at the time. However, capitulation as Bitcoin’s price fell to fresh 2022 lows in wake if jitters about contagion from FTX’s bankruptcy saw many wallets get rid of all their bitcoin, triggering an equally swift pullback on non-zero address numbers.

Surge In Non Zero Address Numbers Driven By New Investors

It has taken roughly 40% surge in Bitcoin’s price since start if year amid 1) optimism for better macro backdrop and 2) increased on chain and technical signs that bear market is over to entice enough new investors back into bitcoin market to get non zero wallet address count back to record high level. According Glassnode data on bitcoin wallet address cohorts, most recent surge innon zero address numbers has been led by surge wallets holding small amount BTC (less than 1BTC). Number so called shrimp wallets just hit new record high above 42 827 million while crab fish shark and whale addresses holding 1 10 10 1K and over 1K respectively have all stagnated .

Rotation In Ownership Away From Larger Investors

Crab fish and shark wallet numbers had initially surged wake off bitcoin price drop after FTX collapse with larger investors using opportunity buy dip it can thus be concluded that recent rise innon zero wallet address numbers being accompanied rotation bitcoin ownership away from larger investors .

Conclusion: Optimism For Global Adoption Of Cryptocurrency

The increase innon zero BTC wallets suggests increasing optimism among investors concerning global adoption off cryptocurrencies despite challenging bear markets . It remains be seen whether influx smaller investors will help pump btc prices going forward or not .