In a significant development for the crypto sector, Bitcoin has reached a major milestone as the number of wallet addresses holding one Bitcoin or more has crossed the one million mark, according to data from Glassnode. This surge in “wholecoiners” can be attributed to the recent decline in Bitcoin’s price, which provided an opportunity for investors to accumulate the cryptocurrency
Glassnode co-founder, Negentropic, took to Twitter to share his insight, stating, “The best time to buy Bitcoin is when there’s blood in the streets.” His comment comes in the wake of several major bank collapses in the United States and the Federal Reserve’s consideration of pausing interest rate hikes in the coming months. These factors have contributed to Glassnode’s confidence in Bitcoin’s potential to reach a price of $35,000 in the mid-term.
While the achievement of one million wholecoiner addresses marks a remarkable milestone, it’s crucial to note that a single Bitcoin wallet address doesn’t always represent a distinct individual. Many crypto investors possess multiple Bitcoin addresses, and others belong to prominent institutions such as cryptocurrency exchanges and investment firms, which typically hold significant amounts of Bitcoin.
Data from CoinGlass, a crypto analytics provider, reveals that out of the approximately 19 million Bitcoins currently in circulation, around 1.89 million BTC, worth $50.7 billion, are held on major centralized exchanges like Binance and Coinbase. Furthermore, an astounding 3 million BTC, valued at $80.4 billion and accounting for 17% of the total circulating supply, are believed to be “lost forever.” This estimation by Glassnode takes into account BTC sent to “burn addresses,” wallets with lost keys, and dormant large accounts untouched for over a decade.
The increase in the number of wholecoiner addresses showcases the growing adoption and confidence in Bitcoin, despite its notorious price volatility. Moreover, the fact that a substantial portion of the total supply is held by institutions and considered lost further fuels the demand for the remaining Bitcoin supply, potentially contributing to future price increases.
This milestone could attract more institutional investors and individuals to consider Bitcoin as a safe-haven asset during times of economic uncertainty. With recent market crashes and concerns over inflation, individuals may view Bitcoin as a means to diversify their portfolios and safeguard their wealth.
While this achievement is encouraging for Bitcoin, investors must exercise caution and conduct thorough research before venturing into the volatile crypto market. As Negentropic wisely suggested, timing plays a vital role in Bitcoin investments, and it is crucial to maintain a long-term perspective while considering the cryptocurrency’s potential.
This development underscores the increasing confidence in the cryptocurrency and could potentially attract more participants to explore the world of Bitcoin and digital assets. However, it is essential for investors to remain vigilant and informed as they navigate this dynamic and evolving landscape.