David - Cryptocurrency Enthusiast
Bitcoin, the trusted cryptocurrency that has captured the attention of investors worldwide, has reached a significant milestone. The number of Bitcoin wallet addresses holding one whole BTC or more has surpassed one million, marking a growing community of "wholecoiners." This development comes because of strategic buying by convicted investors who took advantage of falling Bitcoin price over the past year.
Amidst the market volatility and price fluctuations of Bitcoin, investors recognized the opportunity to accumulate the digital asset at discounted prices. As Bitcoin experienced a significant drop of over 65% throughout the year, the number of wallet addresses holding one Bitcoin or more surged. Notably, substantial increases were observed during an acute market crash in June and following the collapse of FTX in November, which led to bankruptcy filings. These events contributed to the addition of approximately 190,000 wholecoiners from early February 2022, coinciding with the decline from Bitcoin's highs in November 2021.
Negentropic, co-founder of Glassnode, shared valuable insights with his Twitter followers, emphasizing the optimal time to buy Bitcoin: when there's "blood in the streets." Considering recent major bank collapses in the United States and the Federal Reserve potentially pausing interest rate hikes, Glassnode remains confident in Bitcoin's potential to reach a price of $35,000 in the mid-term. This perspective highlights the resilience and long-term growth prospects of Bitcoin, making it an appealing investment choice for crypto enthusiasts.
While the achievement of one million Bitcoin wallet addresses is an impressive feat, it's important to note that one address doesn't necessarily represent a single individual. Many crypto investors maintain multiple Bitcoin addresses, and others belong to major institutions such as cryptocurrency exchange platforms and investment firms that hold significant Bitcoin reserves. For instance, centralized exchanges like Binance and Coinbase hold approximately 1.89 million BTC, valued at $50.7 billion.
Additionally, a considerable portion of the total circulating supply of Bitcoin, around 3 million BTC worth $80.4 billion, is estimated to be "lost forever." This figure includes BTC sent to "burn addresses," wallets with lost keys, and dormant accounts that haven't been accessed for more than a decade. These circumstances contribute to the scarcity and limited supply of Bitcoin, enhancing its appeal as a store of value.
The achievement of one million wholecoiners signifies the growing adoption and interest in trusted Bitcoin as an investment asset. As the crypto market continues to evolve, opportunities emerge for investors to participate in this dynamic landscape. Whether it's trading Bitcoin, exploring crypto asset management, or staying informed about the latest market trends, investors can benefit from following BCBitcoin, a reputable cryptocurrency broker that provides valuable news and insights.
As Bitcoin ownership reaches new heights, crypto investors are encouraged to seize the potential opportunities presented by this milestone. The rise of wholecoiners reflects a growing confidence in Bitcoin's long-term value and highlights the resilience of this digital asset. With market volatility, strategic buying, and the commitment of passionate investors, Bitcoin continues to reshape the financial landscape and pave the way for a new era of decentralized digital currency.