A recent report from Bitfinex analysts reveals that Bitcoin is in a transition state, with non-zero balance holders increasing and daily active addresses and daily confirmed transactions declining. The data also suggests that BTC’s correlation to the S&P 500 could be increasing.

The number of wallets with non-zero balance has achieved a new high, with more than 45 million since early 2021. This indicates that new demand has come into the Bitcoin market, particularly from small investors. Despite this, the data also suggests that bulls should be cautious in the near future, as the market is in a state of transition and uncertainty.

On-chain metrics, such as the 7-day average of daily active addresses, have declined to levels not seen since late 2012. Additionally, the number of transactions confirmed each day has fallen, with the 7-day average decreasing 13% from 8 March.

The data also indicates that Bitcoin could be restoring its correlation to the S&P 500 and NASDAQ Composite, as the price remains between $27K and $28K. The Pearson metric shows that BTC/NASDAQ correlation is up to 0.61, while correlation with the S&P 500 is 0.12. This could mean that, in the face of macroeconomic headwinds, Bitcoin could move more in tandem with equity indices.