Bitcoin Price Action May Not Show it But On-Chain Fundamentals Point Upward

On-chain data of the world's first cryptocurrency Bitcoin BTC/USD is showing bullish colors for the future market movements on this asset. Despite this, short-term market forces pushed Bitcoin's price over 6.4% down today to a value of $29,555 as of press time on Tuesday.

What Happened: Data shared by major blockchain data firm Glassnode shows that the number of Bitcoin addresses holding at least 0.1 BTC — worth about $3,000 as of press time — reached a new all-time high of 3,535,221 on Tuesday. The previous all-time high of 3,534,979 was reported on June 6. Furthermore, Glassnode's data platform also shows that the percentage of Bitcoin's supply last active over five years ago reached a four-month high exceeding 23.2% on the same day.

See Also: How To Earn Free Crypto

Another important metric shared by Glassnode is that the amount of Bitcoin that has been lost or held for the long term reached an 18-month high of 7,364,807 BTC — worth nearly $221 billion as of press time. Furthermore, Glassnode also shows that Bitcoin's seven-day moving average mean transaction volume reached a one-month low of 3.144 BTC.

'Hodled' coins trending up has historically coincided with Bitcoin's price going up, while also the reverse is true. If the number of coins held for the long term is on the rise there is less Bitcoin that can be traded on an exchange which results in lower supply which — if the demand does not drop — causes the price to increase, resulting in even higher demand.

The number of addresses holding at least about $3,000 reaching over 3.5 million wallets may be seen as showing a positive trend in Bitcoin's adoption and mainstream market interest. Still, it must be kept in mind that a single person can control as many addresses as he wants to, which means that this metric is not equivalent to the number of users holding this minimum amount of Bitcoin.