- Bitcoin has been finding its way into more and more addresses as on-chain research data from Glassnode.
- The number of addresses holding Bitcoin rose from 707,000 to 784,000 since January 2019.
- Giants who have called Bitcoin a “bubble” and too “volatile” to be a good store of value.
Bitcoin has been finding its way into more and more addresses as on-chain research data from Glassnode show an 11% increase in Bitcoin holders since last year.
The number of addresses holding Bitcoin rose from 707,000 to 784,000 since January 2019. This data trend seems to suggest the accumulation of the world’s most popular cryptocurrency in the hands of retail traders.
This also seems to correspond with Bitcoin’s market value as it clearly shows the cryptocurrency’s prices on a steady increase as more and more people invest in the currency, resulting in its value increasing over time.
The research also points out that the number of addresses in the network that hold between 1 and 0.1 Bitcoin has also increased by 10% every consecutive year. These kinds of balances are more likely to be attributed to holdings of one time users and first-time traders.
More people have also seen investing in Bitcoin as a store of value. Retail traders have been consistently accumulating Bitcoin as the graph denotes, regardless of price variations, to the cryptocurrency.
This trend in the figure is a clear representation of how the market perceives the value of Bitcoin and how more people choose to hold Bitcoin to keep the value of their cash holdings compared to other assets like gold.
Even though Bitcoin saw substantial price increases from the $3,000 range to up to $13,000 within the first half of 2019 and then falling to half that high at the $6,000 range, the number of addresses holding Bitcoin has been on a constant increase regardless of the price disparities.
This is also interesting since the media and social outlook on Bitcoin profoundly influence the market prices of Bitcoin and nevertheless, of the disdain from larger financial institutions.
Giants who have called Bitcoin a “bubble” and too “volatile” to be a good store of value, the number of people getting into the field has remained on gradual growth.
This also means that the bitcoin distribution within the ecosystem has been increasing. The more unique bitcoin addresses in the market increases, the higher the 18 million BTC in supply is being distributed amongst all its users.
Although Bitcoin “whales” still hold large amounts of the coin accounting to an estimated 40% of all holders. It also noted that the data does have its pitfalls in that the increase in addresses doesn’t necessarily have to represent increased market participation.
Bitcoin owners with more massive holdings can choose to split those holdings across multiple addresses hence increasing the number of unique addresses.