As Bitcoin continues to hover around $40,000, its fundamentals and on-chain indicators have shown significant improvements. On Wednesday, July 28, the Bitcoin blockchain recorded its largest net outflow in 5 years since 2016.
On this day, the exchange balance decreased by more than 60,000 bitcoins in total. This is of course a bullish indicator, as shortages of supply may push up prices.
At the same time, the number of unique entities interacting with the Bitcoin network has increased significantly in the past week! On-chain data provider Glassnode reports: “In the past week, the number of active entities on Bitcon has rebounded, from 250,000 active entities per day to 32.5 10,000 active entities, an increase of 30%. This level of activity continued in July 2020, when the BTC price was approximately US$11,300 in the second quarter of 2020.”
Although Bitcoin Whales have been accumulating major supplies during this integration phase, small retailers have also contributed to this. Santiment reports that Bitcoin's millionaire whale addresses — holding 100 to 10,000 — BTC has reached a new milestone, with a total holdings of 9.19 million.
Since May 2022, these whale addresses have increased by 170,000 bitcoins, of which 130,000 have increased in the past 4 weeks alone. On the other hand, popular market analyst Willy Woo firmly believes that small retail investors play a vital role in continuing the bull market.
Interestingly, the Bitcoin blockchain has reached another milestone, with its total number of users exceeding 114 million for the first time. This is the same as the number of Internet users during the Internet boom in 1997, but its growth rate is much faster.