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Last Friday was a historic day for the Bitcoin network.
For the first time in Bitcoin history, the number of wallet addresses holding at least 1 BTC of whole tokens has surpassed 1 million.
The number of so-called ‘whole coiner’ bitcoin wallets has been steadily increasing, having been suspended in 2020 and 2021 before reopening in 2022, but the number of wallets holding at least 0.1BTC and 0.01BTC. is continuously increasing, the number of wallets with non-zero balances is increasing.
These wallet cohorts currently stand at 4,367,000, 12,032,000, and 46,715,000 respectively, all at or near all-time highs.
As new bitcoins continue to be mined (each block is added to the chain, so the current rate is about 6.25 bits per 10 minutes), distributed among miners, and eventually as these coins come into circulation, bitcoins A more equal distribution of supply takes place. put on the market.
Also, as more and more people become interested in and start investing in bitcoin as society-wide adoption of bitcoin increases, the increased demand will push prices up (in the long run anyway), Massive stash starts distributing holdings to early Bitcoin investors/adopters.
Are Wholecoiners considered “smart money”?
According to the trend in the rate of increase in the number of Wholecoin wallets in recent years, one might think that this group of wallets represents the so-called “smart money”.
Smart money refers to highly educated investors and/or investors engaged in the market. This is more likely to be an investor who owns more than 1 bitcoin than the average investor who only owns a few hundred dollars of his BTC.
During the parabolic bull market in late 2020 and the high Bitcoin average price in 2021, Wholecoin wallet growth was stagnant and sometimes even negative.
This suggests that wholecoin traders profited during the bull market and were selling to a smaller cohort whose numbers generally continued to grow throughout the bull market.
The rate of increase in the number of whole coiners actually started to accelerate again from June 2022, when the Bitcoin price dipped below $30,000, and then followed by the collapse of the FTX cryptocurrency exchange. It spiked in November after a rush of self-storage in . their holdings.
Therefore, the continued rise in the number of wallets holding 1 BTC could be seen as a sign that ‘smart money’ continues to ‘buy the bargain’.
In fact, while the world’s largest cryptocurrency has performed extremely well so far this year (Bitcoin is up about 65% year-to-date), it’s currently in the low $27k range, but still 2021. It remains down about 60% year-on-year. All-time highs in the $69,000 area.
The Bitcoin bull market may return, but it is still in its early stages.
And if the rate of growth in the number of Wholecoin wallets slows/reversals, that could be a sign that the bull market is maturing.