The biggest cryptocurrency in the world, Bitcoin (BTC), saw a significant price fall following last week's Bitcoin halving event.

At the time of writing, Bitcoin has a market capitalization of $1.238 trillion and is trading at $62,878. Despite the price volatility, on-chain statistics indicate that investors are returning to Bitcoin, as evidenced by the fast increasing number of new non-zero wallets.

Non-Zero Bitcoin Wallets Are Increasing

The aggregate count of Bitcoin wallets that are not empty is increasing at a swift pace, even in the face of unpredictable fluctuations in market value. This suggests that despite changes in its value, people are still interested in and using Bitcoin.

On the other hand, the rise of wallets containing cryptocurrencies, like Dogecoin, has taken a different course, flattening out after seeing notable spikes earlier in the year.

Best of all, the Cardano network stands out as one of the few to witness a drop in active wallets, suggesting a shift in user activity within the ecosystem. This development shows that investors are find a safe haven in Bitcoin instead of altcoins.

A recent report unveiled by Fidelity Digital Assets on Monday revealed a notable uptick in the number of Bitcoin wallets holding $1,000 or more since the start of 2024. The data indicates a substantial 20% increase in this category.

The trend of accumulation among smaller addresses has been steadily growing, reaching a record high of 10.6 million on March 13. This figure marks a significant surge from the 5.3 million recorded in 2023, representing an impressive 101% rise over the past year.

In parallel, concerns have emerged among cryptocurrency traders as Bitcoin’s price dips to as low as $62.8K. This downward movement in price has led to a noticeable decrease in buy calls across social media platforms, while sell calls are on the rise at an increased rate.

Such feeling, which is typified by FUD (fear, uncertainty, and doubt), is often a sign of a change in the dynamics of the market. But as traders adjust their holdings and tactics in reaction to changing market conditions, it also suggests possible chances for a market rebound.

Whale Activity in Bitcoin Drops

The amount of Bitcoin whale activity has decreased while the quantity of small wallets containing Bitcoin has increased.

Since March 14, there has been a noticeable decrease in Bitcoin whale activity, according to cryptocurrency expert Ali Martinez. Martinez posits that a rebound in whale transactions may function as the impetus for an increase in Bitcoin values.