Bitcoin News

Bitcoin’s Millionaire Club: Wholecoiner Addresses Hit a Record High!

Have you ever dreamed of owning a whole Bitcoin? It’s a goal for many in the crypto space, and recently, a significant milestone was reached. The number of Bitcoin wallet addresses holding at least one full BTC has officially crossed the one million mark! According to data from the renowned blockchain analytics firm, Glassnode, this landmark achievement was hit on May 13th, with Bitcoin trading around $27,434.

What’s Driving This Surge in Wholecoiners?

It’s fascinating to see this growth, especially considering the wild ride Bitcoin has been on. Think back to last year when Bitcoin’s price took a tumble, dropping over 65% from its peak. Interestingly, this price decline seems to have spurred more people to accumulate Bitcoin. Glassnode’s data highlights two key periods of significant growth in wholecoiner addresses:

  • The June Market Crash: When the market experienced a sharp downturn, many saw it as an opportunity to ‘buy the dip’.
  • The FTX Collapse (November 11th onwards): The dramatic implosion of the FTX exchange and its subsequent bankruptcy filing also coincided with a notable increase in wallets holding one or more Bitcoin. This could suggest a move towards self-custody and a lack of trust in centralized platforms.

So, while the price was dropping, the conviction of many Bitcoin enthusiasts only seemed to grow stronger!

“Blood in the Streets”: A Buying Opportunity?

Since Bitcoin’s price peaked in November 2021, around 190,000 new ‘wholecoins’ have been added to these wallets, starting from early February 2022. This aligns with a classic investment adage, famously echoed by @Negentropic, co-founder of Glassnode, to his substantial Twitter following: “The greatest time to buy Bitcoin is when there is ‘blood in the streets.'” This sentiment suggests that periods of market fear and uncertainty often present the best entry points for long-term investors.

Why the Optimism? Factors Fueling Bitcoin’s Potential

Beyond just the price dips, there are other factors contributing to the positive outlook for Bitcoin. Glassnode points to recent events, such as the turmoil in the traditional banking sector in the United States and the anticipated slowdown in interest rate hikes by the Federal Reserve. These factors can make alternative assets like Bitcoin more attractive. In fact, Glassnode expresses confidence that Bitcoin could reach $35,000 in the medium term.

One Million Wallets, But How Many Individuals?

While the “one million” milestone is certainly noteworthy, it’s crucial to understand what it represents. Does it mean one million individual Bitcoin holders? Not necessarily. Here’s why:

  • Multiple Wallets: Many crypto investors, for security and organizational purposes, utilize multiple Bitcoin wallet addresses. One person could easily control several wallets.
  • Institutional Holdings: A significant portion of these wallets belong to large institutions, such as cryptocurrency exchanges and investment firms, which hold vast amounts of Bitcoin on behalf of their users or clients.

Where is All the Bitcoin? A Look at the Numbers

Let’s dive deeper into where the existing Bitcoin supply is located. According to data from CoinGlass, out of the approximately 19 million Bitcoin currently in circulation, a substantial 1.89 million BTC (worth a staggering $50.7 billion) is held on major centralized exchanges like Binance and Coinbase. This highlights the continued reliance on these platforms for trading and custody.

Interestingly, a significant portion of Bitcoin is considered lost forever. Glassnode estimates this figure to be around 3 million BTC, valued at $80.4 billion, representing about 17% of the total circulating supply. This “lost” Bitcoin falls into several categories:

  • Burn Addresses: Bitcoin intentionally sent to addresses with no known private key, effectively removing them from circulation.
  • Lost Keys: Wallets where the private keys have been irretrievably lost, rendering the Bitcoin inaccessible.
  • Untouched Accounts: Large Bitcoin holdings that have remained dormant for over a decade, with no transaction activity.

Key Takeaways and What It Means for You

  • Growing Conviction: The increase in wholecoiner addresses, even during price downturns, suggests a growing long-term belief in Bitcoin’s value proposition.
  • Self-Custody Trend: The spike following the FTX collapse might indicate a move towards greater self-custody of Bitcoin.
  • Institutional Interest Remains: While individual holders are increasing, institutions continue to hold significant amounts of Bitcoin.
  • Scarcity Factor: The considerable amount of lost Bitcoin further emphasizes its scarcity, a key driver of its potential value.

Looking Ahead

The milestone of one million wholecoiner addresses is a testament to Bitcoin’s resilience and the unwavering belief of its holders. While market volatility is inherent in the cryptocurrency space, the increasing number of individuals and institutions accumulating Bitcoin suggests a maturing market. Whether you’re a seasoned crypto investor or just starting to explore the world of digital currencies, understanding these trends can provide valuable insights into the evolving landscape of Bitcoin and its potential future.

Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.