On-chain stats for February represent positive sentiment for Bitcoin as addresses with non-zero BTC balances hit all-time highs.
In addition, wallets with positive BTC balances are increasing coin hoarding. According to data from on-chain analytics firm Glassnode, the circulating supply of BTC last moved three to five years ago to a four-year high of over 2.8 million BTC.
The number of addresses with non-zero balances increased sharply in the years 2019 and 2020 until mid-2021, when the growth rate looks to be steady at around 35 million addresses. However, the index’s growth rate has skyrocketed since the beginning of 2022, resulting in a new all-time high of 40,276,163, according to Glassnode.
The active BTC supply 3 to 5 years ago spiked to coincide with the top of the last extended bull market in early 2018.
According to Glassnode, 817,445 of the addresses with non-zero balances had at least 1 BTC on Monday, a 10-month high.
Supply-side momentum has provided a number of notable indicators over the past month. FSInsight reported on Feb. 9 that 75% of the circulating supply of BTC is illiquid because it hasn’t moved in a long time. The report describes a situation where this will be ready to explode as soon as a moderate amount of BTC is bought in the market.
Political turmoil in Canada and Ukraine in February also sheds more light on Bitcoin’s censorship resistance. Some Canadians use Bitcoin to protect their funds from freezing, while the Ukrainian government is now accepting donations in BTC as tensions escalate in the region.
The crypto king is currently trading at $38,465, down about 45% from its Nov. 10 all-time high of $69,000, according to CoinGecko.