Bitcoin ($BTC) adoption has accelerated in recent months, with the total number of unique addresses holding at least one BTC surpassing one million for the first time. According to blockchain data shared by analysis firm Glassnode, this record was set on May 12, indicating increased interest in the flagship cryptocurrency and ongoing accumulation. The number of addresses holding one whole BTC, also known as “wholecoiner” addresses, currently stands at 1,000,527, a significant increase from the 800,000 mark reached on February 2.
The recent achievement is mainly due to the prolonged bear market, which has seen Bitcoin’s value drop by more than 65% in the last year. Notably, during the downfall of major players in the crypto space in June and November, the number of wholecoiner addresses increased as other participants accumulated tokens.
It is important to note that exceeding one million wallet addresses holding at least one Bitcoin does not necessarily imply the existence of a million distinct individuals or institutions holding such amounts. Because many cryptocurrency investors and institutions have multiple Bitcoin addresses, the number of individual holders may be less than one million. However, as the number of wholecoiner addresses reaches a new high, the number of non-zero Bitcoin addresses has increased significantly by more than 15% in the last 15 months.
Paul Tudor Jones II, a well-known billionaire hedge fund manager, recently stated that he continues to support Bitcoin and sees it as a “small diversification” in his portfolio. Jones says Bitcoin and gold have performed exceptionally well due to current risk premiums. He did acknowledge, however, that Bitcoin faces regulatory challenges in the United States, where the entire regulatory apparatus is opposed to it.
Furthermore, Jurrien Timmer, Director of Global Macro at Fidelity Investments, took to Twitter to discuss the unexpected rise of Bitcoin and gold as top performers in 2023. Timmer hypothesised that this phenomenon could be driven by market sentiment or a deeper underlying cause, implying a possible recurrence of the financial repression seen eight decades ago.
To summarise, Bitcoin adoption is on the rise, as evidenced by the achievement of over one million unique addresses holding at least one BTC. This surge reflects the crypto community’s growing interest and ongoing accumulation. Despite market challenges and regulatory headwinds, prominent figures such as Paul Tudor Jones II remain bullish on Bitcoin’s future. It will be interesting to see how such adoption trends affect the broader financial landscape as the cryptocurrency market evolves.