Bitcoin Holds Near $25K Despite Fall in Non-Zero Balance Addresses – Here’s Where BTC Could Go Next

cryptonews.com:

Bitcoin held close to yearly highs just below $25,000 on Monday, with the world’s largest cryptocurrency by market capitalization higher by about 2.0% on the day after rebounding strongly from a brief dip back under $24,000 earlier in the session. Bitcoin’s rebound from the $21,000s last week and ongoing resilience has surprised many analysts.

Many had been predicting an extension of the recent pullback from yearly highs, given ongoing strength in the US dollar, upside in US yields and downside in US equities as traders drove up Fed tightening bets, and given worries about an escalating US regulatory crackdown on crypto firms. That pessimism resulted in Bitcoin suffering from significant investor outflows last week, according to the latest CoinShares weekly funds flow report.

According to the report, Bitcoin investment products saw an outflow of just shy of $25 million, taking month-to-date flows to negative $5.1 million. Meanwhile, last week also saw a steady decline in the number of wallet addresses on the network that hold a non-zero balance. According to data presented by crypto analytics firm Glassnode, the number of non-zero balance addresses fell from a record high of 44.226 million on Wednesday to just under 44 million on Sunday.

That marked a decline of around 140,000 on the week, with declines witnessed across the major address cohorts. Addresses that hold at least 0.1 BTC dropped from a record high of around 4.231 million on Tuesday to around 4.225 million as of Sunday. Meanwhile, the number of addresses holding at least 1 BTC fell to around 1,500 between Tuesday and Sunday.

Outflows from Bitcoin investment products normally happen during periods of exacerbated selling and downside pressure on the BTC price.