Bitcoin, the world’s largest cryptocurrency, saw a massive jump in its network activity during January as the number of Bitcoin addresses involved in sending or receiving BTC jumped above 22.3 million for the first time.
According to the latest numbers posted by Glassnode, an on-chain market analysis platform, active Bitcoin addresses are rising due to significant demand since the start of 2021. The most valuable crypto asset jumped above $34,000 on Tuesday after posting a 2% rise in the last 24 hours.
Apart from the rising number of active BTC addresses, Glassnode also notified that the Bitcoin supply stored in crypto exchange wallets reached its lowest level in more than 2 years. The company also mentioned that more than 12% of the BTC supply moved above the price level of $30,000.
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Bitcoin has seen a volatile month as the price of BTC jumped from $28,000 to as high as $41,500. The price of the digital currency dipped below $30,000 on 27 January but the recent bullish momentum helped BTC to stay above the $30,000 level. Finance Magnates earlier reported about the recent Bitcoin rally after Elon Musk updated his Twitter profile with the Bitcoin tag.
The volumes of the world’s largest cryptocurrency jumped significantly during January as Bitcoin remained the preferred crypto asset for institutional investors. CoinShares, Europe’s largest crypto asset management firm mentioned that BTC accounted for nearly 92% of the total weekly crypto inflows. “Volumes in Bitcoin saw the second-highest on record last Friday totaling US$22bn, and US$55bn for the whole week. Investments remain very BTC-focused representing 92% of total inflows, while Ethereum saw inflows totaling US$20m. There was an $8m inflow into multi-asset crypto investment products. Despite the increased perceived interest from investors in broadening their scope to other crypto assets, there has been little interest in multi-asset investment products with only US$500m of assets under management, representing only 1.6% of passive investments,” the official report states.