Agreement In Debt Ceiling Deal Triggers Bitcoin Price Rally; Active Addresses, Transactions By Long-Term Holders Surge

This weekend turned out positive for holders of the world's first-ever crypto asset Bitcoin, as it saw a price surge of nearly 2% following the recent update in the U.S. debt limit deal.

This led to the rise of active addresses and the number of transactions by long-term holders.

The world's largest crypto asset by market capitalization saw a 1.99% gain and traded in the green zone at $27,201.26 over the past 24 hours on Sunday, based on the data from CoinMarketCap.

The uptrend in Bitcoin's price slowly started after U.S. President Joe Biden shared via his Twitter account that the government had reached, in principle, a budget agreement in the debt-ceiling deal.

"Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle," Biden noted in his tweet, adding that "it is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone."

Aside from the debt-ceiling agreement, Bitcoin active addresses skyrocketed to 960,00, based on the latest data from the crypto intelligence portal Santiment.

"May's concerningly low Bitcoin address activity is finally starting to rebound again. Increasing utility is necessary for crypto assets to enjoy sustained rallies. Keep an eye on whether $BTC can head into June with 1M or more daily active addresses," Santiment's tweet over the weekend read.

The increase recorded a three-week high, which was a first since May 3 and underlined the surge in the crypto asset's utility.

The massive spike in activities of Bitcoin addresses is a positive indicator after the crypto asset plummeted below the $28,000 price level and, at one point, traded below the $26,000 territory.

The increase in utility is also significant to the cryptocurrency's sustainable growth.

Meanwhile, Glassnode, an on-chain and financial metrics provider reported that the "transfer volume sent by long-term holders in profit has recorded a significant ascent YTD, increasing from $25M to $489M, a near 2,000% increase."

Based on the data, the total amount moved by long-term holders in profit dramatically surged from $25 million at the start of the year to a whopping $489 million this month.

Bitcoin continued to trade in the green zone with a 2.17% gain and was trading up at $27,255.72 over the past 24 hours and had a 24-hour volume of $10,259,938,876 as of 11:39 a.m. ET on Sunday, based on the latest data from CoinMarketCap.