- The total number of Bitcoin addresses has exceeded 50 million.
- Demand has increased significantly over the past 24 hours.
As the price rose above $40,000 for the first time since April 2022, the number of addresses holding Bitcoin increased [BTC] has passed 50 million.
Dates of Santiment it turned out that there are 51.14 million BTC addresses with a balance.
With most of the year marked by growth in the overall cryptocurrency market capitalization, the total number of addresses holding BTC has grown by 17% since January.
Source: Santiment
This new high comes at a price
At the time of writing, BTC exchanged hands at $41,752. During the intraday trading session on December 4, the leading coin briefly traded above $42,000 before experiencing a slight pullback.
With increased demand for the coin over the past week, its value has risen by almost 12% over the past week, data from CoinMarketCap showed.
However, the spike recorded on December 4 in BTC’s age consumption measure signals impending price volatility.
The age consumption metric tracks the number of tokens that change addresses on a given date, multiplied by the time since they last moved.
Typically, an increase in an asset’s age consumption indicates that a significant number of previously inactive tokens have started to change addresses. This suggests that there has been a sudden and sharp change in the behavior of long-term investors.
Conversely, when the metric experiences a decline, it means that long-held coins are left sitting at wallet addresses without being traded.
This metric is used to track the local tops and bottoms of assets. This is because long-term holders are not often prone to quick moves of their dormant coins. Therefore, when this happens, it results in major shifts in market conditions.
Between December 3 and 4, BTC age consumption increased by almost 400%, from 4.5 million to 23 million within a 24-hour period.
Source: Santiment
Demand continues to grow
With the king coin trading at its highest level in 18 months, demand among spot traders has increased. The coin’s key momentum indicators observed on a daily chart were noted in overbought regions at the time of writing.
For example, BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) values were 75.49 and 81.93, respectively. These suggested that coin accumulation far exceeded distribution.
Similarly, the coin’s Aroon Up Line (orange) rested at 92.86%. When an asset’s Aroon Up Line is near 100, it indicates that the uptrend is strong. It also suggests that the most recent high was reached relatively recently.
Source: TradingView