Last Friday was a historic day for the bitcoin network.
For the first time in bitcoin’s history, the number of wallet addresses holding at least 1 BTC in whole tokens exceeded one million.
Steady growth in the number of so-called “holecoiners” Bitcoin The wallet, which resumed in 2022 after a halt in 2020 and 2021, comes amid a steady increase in the number of wallets with at least 0.1 and 0.01. B T cAlso a steady increase in the number of non-zero balance wallets.
Those wallet cohorts now stand at 4.367 million, 12.032 million and 46.715 million respectively, all at or near record highs.
more egalitarian distribution of Bitcoin The supply arrives as new bitcoins continue to be mined (at the current rate of about 6.25 per 10 minutes each block is added to the chain) and distributed among miners, with these coins eventually finding their way to market. .
also comes as of bitcoin Adoption by society at large increases – as more and more people become interested in bitcoin and start investing, higher demand pushes the price up (in the long run, anyway) and leads to more early bitcoin investors/adopters. Encourages people to start distribution on a large scale. His holdings
Can Holocoiners be considered “smart money”?
According to trends in the rate of growth of the number of Wholecoin wallets in recent years, some may consider this group of wallets to represent the so-called “smart money”.
Smart money refers to investors who are highly educated and/or engaged in the market – who have 1 Bitcoin Or more likely than your average investor who owns a few hundred bucks of BTC.
During the parabolic bull run in late 2020 and the period of higher average bitcoin prices in 2021, the growth of Holocoiner wallets stalled and sometimes even turned negative.
This suggests that Holocoiners were cashing in on the bull market and selling to smaller groups, whose numbers typically continued to grow throughout the bull market.
The rate of growth of the number of wholesale coins actually started rising again from June 2022, when the price of bitcoin dropped below $30,000, before making a jump in November following the collapse of the crypto exchange FTX self-custody among bitcoin investors. Started a rush to take. His holdings
Thus the continued increase in the number of wallets holding 1 BTC can be taken as a sign that the “smart money” is continuing to “buy the dip”.
Indeed, while the world’s largest cryptocurrency has performed exceptionally well so far this year (BTC was up nearly 65% last year), at the current lows of $27,000, it is still down about 60% over 2021. is below. Record high in the $69,000 area.
While the Bitcoin Bull Market May Well Be Back, It’s Still Too Overpriced early stages,
And when the growth rate of the Wholecoiner wallet count slows/reverses, it could be a sign that the bull market is maturing.