50K New Bitcoin Wallets Signal Growing Network Participation Despite Price Swings
March has been a rollercoaster for Bitcoin, yet the networks growth remains strong as the blockchain has seen a notable rise in the number of smaller wallets.
During the same period, large holders have exhibited signs of strategic movements.
Wallet Growth Accelerates
Bitcoin has finally rebounded above $90,000 amid heightened volatility in March. The network has seen significant growth, with 50,000 more wallets than a month ago. In fact, Santiments analysis shows that 37,390 additional wallets now hold less than 0.1 BTC, while 12,754 more wallets contain between 0.1 and 100 BTC.
On the other hand, the number of wallets holding at least 100 BTC has dropped by six, which could potentially mean that some large holders may be taking profits. The data suggests a bullish trend, with smaller investors accumulating Bitcoin despite market fluctuations.
However, Santiment noted that for a broader crypto breakout, an increase in 100+ BTC wallets would be an encouraging sign. While whales have slightly reduced their holdings, the rising number of smaller wallets indicates ongoing adoption and confidence in Bitcoins long-term potential.
Despite the increasing buying by the smaller wallets, broader market conditions have seen intense selling pressure this year, as highlighted by Glassnodes latest data. Significant sales have been made across all Bitcoin wallet sizes, which has created immense market pressure.
Since mid-January, selling activity has accelerated, with realized losses peaking at $818 million daily, second only to August 2024s $1.34 billion event. This suggests that many investors are exiting at a loss as they struggle under current market conditions.
Key Levels to Monitor
The coiling of volatility over recent months, as per Glassnodes findings, has led to a widespread price contraction across all digital assets. This is the second-largest capitulation event in the current Bitcoin cycle.
A key level to monitor is $92,000, representing the Short-Term Holder Cost Basis, which could determine local momentum shifts. If Bitcoin sees further declines, the $71,000 region stands out as a major support level, which is validated by multiple technical and on-chain indicators.
Defending this zone will be crucial for bullish investors to prevent a deeper downturn and maintain confidence in Bitcoins ability to recover from current market pressures.
The post 50K New Bitcoin Wallets Signal Growing Network Participation Despite Price Swings appeared first on CryptoPotato.
Text source: CryptoPotato
