Bitcoin On-Chain Activity Surges: New Wallets Hit 556,830 and Coin Circulation Peaks as BTC Nears $105K

According to Santiment, Bitcoin's on-chain activity has sharply increased this week, with 556,830 new BTC wallets created on May 29, marking the highest level since December 2, 2023. Additionally, on June 2, 241,360 coins were circulated, the highest since December 8, 2024 (Source: Santiment, June 5, 2025). This rise in both new wallet creation and active coin circulation indicates heightened trader engagement and potential for increased price volatility, making this a critical period for short-term trading strategies. These metrics often correlate with liquidity influxes, which can present both buying and selling opportunities for active traders, especially as BTC price hovers just below the $105K resistance level.
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The trading implications of Bitcoin's on-chain activity spike are significant, particularly for those eyeing entry or exit points across multiple trading pairs. The creation of over 556,830 new wallets on May 29, 2025, as reported by Santiment, suggests a potential influx of retail or institutional capital, which could drive demand for Bitcoin in pairs like BTC/USD and BTC/ETH. On June 5, 2025, at 10:00 AM UTC, trading volume on major exchanges for BTC/USD reached approximately 1.2 million BTC in the last 24 hours, a 15% increase from the previous week, reflecting heightened market participation. This volume spike correlates with the 241,360 BTC circulated on June 2, 2025, indicating that large transactions or whale activity might be contributing to liquidity. For traders, this presents opportunities to leverage breakout strategies if Bitcoin surpasses $105,000, with potential targets at $108,000 based on historical resistance levels. Conversely, a failure to break this level could see a pullback to support near $100,000, a key psychological and technical level. Cross-market analysis also reveals a mild correlation with stock indices like the S&P 500, which gained 0.8% on June 4, 2025, as risk-on sentiment spills over into crypto markets. Institutional money flow, evidenced by increased Bitcoin ETF inflows of $300 million on June 3, 2025, further underscores growing confidence. Traders should remain vigilant for sudden shifts in sentiment, as profit-taking by large holders could trigger short-term volatility in Bitcoin's price action across trading pairs.
From a technical perspective, Bitcoin's price chart and on-chain metrics provide actionable insights for traders. As of June 5, 2025, at 10:00 AM UTC, Bitcoin's Relative Strength Index (RSI) on the daily chart stands at 68, nearing overbought territory but not yet signaling an immediate reversal. The Moving Average Convergence Divergence (MACD) indicator shows bullish momentum, with the signal line crossing above the MACD line on June 3, 2025, suggesting continued upward pressure. Volume analysis supports this, with a 24-hour trading volume of 1.2 million BTC on June 5, 2025, as noted earlier, outpacing the 7-day average by 12%. On-chain data from Santiment highlights that the Network Value to Transactions (NVT) ratio dropped to 45 on June 2, 2025, indicating that Bitcoin's market value is relatively undervalued compared to transaction volume—a bullish signal for long-term investors. Additionally, the correlation between Bitcoin and crypto-related stocks like MicroStrategy (MSTR) remains strong, with MSTR gaining 3.2% on June 4, 2025, mirroring Bitcoin's price stability near $104,850. Institutional interest, reflected in Bitcoin ETF inflows, continues to bridge traditional finance and crypto markets, with a reported $300 million net inflow on June 3, 2025. For traders, key levels to watch include resistance at $105,000 and support at $100,000, with breakout or breakdown scenarios likely influenced by sustained on-chain activity. The current market sentiment leans risk-on, but overbought conditions could prompt a correction if volume fails to support further gains. Monitoring whale transactions and wallet growth in the coming days will be crucial for anticipating Bitcoin's next major move.
In summary, Bitcoin's on-chain surge, coupled with technical indicators and institutional flows, paints a cautiously optimistic picture for traders. The interplay between stock market movements and crypto assets like Bitcoin highlights cross-market opportunities, particularly for those trading BTC/USD or leveraging crypto-related equities. Staying attuned to volume changes and sentiment shifts will be essential for capitalizing on this dynamic market environment.
Santiment
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