Bitcoin continues to trade near its 18-month peak levels, despite a recent 3% correction pushing the asset below $36,000. During the market-wide surge, Bitcoin wallets have experienced significant fluctuations, with an interesting trend emerging in wallet addresses. Crypto analytic firm Santiment reports that numerous new smaller wallets holding less than 1 BTC have flooded the network, with over 1.5 million wallets of this size appearing in the past month.

Meanwhile, the 1-100 BTC tier has stabilized, and some profit-taking activity may be occurring within the 100+ BTC tier. Data shows that 80% of Bitcoin addresses are currently profitable, which could motivate holders to divest their funds and capitalize on market conditions. Despite this, on-chain metrics remain bullish, with Bitcoin transaction count hovering near its recent high of 703k and average transaction fees spiking to $18.67, a level last seen in May during the Ordinals frenzy.