The latest Glassnode report reveals that bitcoin has experienced a notable surge in the number of active addresses in July 2021, with active BTC entities rising 30% from 250,000 to 325,000 active users.
According to Glassnode, this is the biggest surge ever recorded after the number of active bitcoin entities dropped 41% from 425,000 in January 2021 to below 245,000 addresses in early July 2021.
The current level of bitcoin activity corresponds to levels maintained in July 2020 when bitcoin was trading at around $11,300.
Moreover, another analytics service, Santiment, indicates that BTC investors have been accumulating larger amounts of the cryptocurrency.
The amount of bitcoin held on addresses storing between 100 and 10,000 BTC has grown to 9.23 million bitcoins ($364 billion) as of Aug. 1 2021.
This a new all-time high for this group of investors.
The previous all-time high took place on April 5, 2021, just one week before the bitcoin price broke an all-time high of above $64,000.
According to Santiment, these addresses have accumulated 170,000 more BTC in the July 2021. Similar data can be found in late December 2020 just before bitcoin went on a massive bull run, with prices shooting from $29.0K to $40.8K in 2021’s opening week.
According to Santiment analysis, generally when these 3 key metrics have a drastic spike or dip in unison, this a promising sign of a major price rally. These are:
Daily active addresses
This occurred on July 27 2021 when:
Bitcoin crossed $40K for the first time since mid June 2021
Active addresses went up to a 3-week high
Both social and trading volumes hitting 5-week highs
Despite a positive trajectory, however, Santiment indicates the amount of bitcoin in circulation in July 2021 has been concerningly low, and likely the lowest value transfer activity on the network in BTC history.