The price of Bitcoin, the largest cryptocurrency, surged abruptly to tap a new all-time high. The price rally of Bitcoin came as a surprise for the crypto enthusiasts because it just smashed through the $41,000 barrier on January 8. Since the price of Bitcoin and network activity soared to a new high, over 22.3 million unique addresses actively transferred BTC just in January.
The recent milestone of Bitcoin was recorded by Glassnode, who added:
“In January, more than 22.3 million unique addresses were active in the network sending or receiving $BTC – the highest monthly number in Bitcoin’s history to date.”
Moreover, Bitcoin trade volumes accelerated at a rapid pace to set record levels last month. Kraken, the giant cryptocurrency exchange, stated it had processed $56 billion worth of assets. Last month’s transactional volume is more than it had processed during all of 2019.
Despite the surging trade volume and unique active wallets, a significant decrease is recorded by the crypto market data aggregator Glassnode in the number of “active entities.” According to Glassnode, an entity is “a cluster of addresses that are controlled by the same network entity.”
Institutional Investors Aggressively Buying Bitcoin
Market indicators and data records from industry insiders indicate that institutional players are actively acquiring cryptocurrencies, most importantly Bitcoin. Business intelligence firm MicroStrategy has aggressively purchased Bitcoin, bringing its total holdings to 71,079.
Based on the recent announcement, the firm has dropped another $10 million in order to purchase 295 BTC. The company started its Bitcoin campaign by investing almost $250 million in the digital asset in August. As of now, the firm has spent a total of $1.145 billion on acquiring Bitcoin.
Similarly, The US-based cryptocurrency manager Grayscale is aggressively buying Bitcoin. Based on the report, the firm has added almost 40,000 BTC, worth $1.36 billion, so far in 2021. Some analysts believe the growing institutional interest could be the main catalyst behind the Bitcoin bull run.