One million addresses now hold more than 1 BTC, according to data from Glassnode.
Full Bitcoin Addresses: 1 Million Addresses Now Own 1 BTC or More
In November 2021, Bitcoin skyrocketed to a wild high of $69,000. However, despite a healthy rally in the first quarter of the following year, the cryptocurrency is still down by almost two-thirds from its peak price. The good news is that this drop in price has made it easier for people to invest in Bitcoin and continue accumulating it.
According to data from Glassnode, one million addresses now hold more than 1 BTC, equivalent to $26,800. This marks a surge in the number of Bitcoin holders, as the price correction opened up opportunities for individuals to jump on the Bitcoin bandwagon.
In particular, the number of addresses holding full BTC status increased significantly at the end of February last year when Bitcoin was midway through correcting after its record high. This suggests that the drop in price has not deterred investors from investing in Bitcoin, as it remains a popular choice for those looking to diversify their investment portfolio.
While the cryptocurrency market remains volatile, the growing number of Bitcoin holders signals a continued interest in the digital asset. As the market evolves, it will be interesting to see how Bitcoin performs and how many more investors join the Bitcoin community.
Holding a full bitcoin is now equivalent to roughly half the median US salary, according to Dan Ashmore, the head of research at Investoo Group. While it has become easier to acquire a full bitcoin compared to late 2021, this could change if the cryptocurrency’s price surges once again, making it out of reach for many.
Ashmore explained that during the pandemic-induced bull market, there was a clear leveling off in the previous trajectory at which the number of addresses containing 1 bitcoin or more was growing. However, as bitcoin’s price fell last year, the previous upward trajectory in the growth of these addresses was resumed. Ashmore added that he doesn’t expect this pattern to change in the future.
It’s worth noting that one bitcoin address doesn’t necessarily represent one person. Some individuals control multiple bitcoin addresses, while some addresses may belong to institutions or groups of people.
Nevertheless, Ashmore believes that the fact that one million addresses now hold more than 1 BTC highlights how deeply Bitcoin has established itself in the mainstream realm in recent years. As Bitcoin continues to evolve, it will be interesting to see how it affects the investment landscape and how accessible it remains to the wider public.
Whales (and exchanges) Among Million Full Bitcoin Addresses
Despite the decentralization of the Bitcoin network, the distribution of wealth is more concentrated than commonly believed. According to BitInfoCharts, only 7% of the supply (1.356 million BTC, worth $36.4 billion) is distributed among the nearly 46.5 million addresses with at least some bitcoin – but less than one. The other 93% (18 million BTC, worth $482.7 billion) exists in the one million addresses that now own a full BTC, representing about 2.1% of all non-zero Bitcoin addresses.
However, it’s important to note that these statistics are somewhat skewed considering how much BTC resides within crypto exchange addresses – which mostly represent aggregate user holdings. CoinGlass points to 1.89 million BTC ($50.7 billion) sitting with crypto exchanges, about one in every 10 bitcoin in circulation, led by Binance, Coinbase, and Bitfinex.
Additionally, Glassnode considers 1.46 million BTC ($39.2 billion) to be “probably lost” forever, equal to 7.5% of all bitcoin in existence.
While the concentration of wealth in fewer holders can lead to imbalanced buying and selling pressure, resulting in significant price fluctuations, Erik Saberski, vice president of data science at The Tie, pointed out that even distribution across financial systems leads to stability in associated asset classes. Thus, more people holding a full bitcoin could indicate increased price stability, reflecting bitcoin’s maturation.
Because bitcoin is the flagship asset of the crypto economy, this signal of adoption seems to portend broader growth for the overall digital asset ecosystem.
Saberski
With this in mind, a measure for adoption does not necessarily suggest anything about the market in the short term. Indeed, adoption happens on a much slower timescale.
Saberski
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