The world’s most renowned cryptocurrency has reached a significant milestone as Bitcoin holders with at least 1 BTC reach 1 million, according to blockchain analytics firm Glassnode. This development underscores Bitcoin’s growing adoption and accumulation among individuals and institutions, highlighting the increasing trust in its long-term value proposition.
Glassnode’s data reveals a steady and sustained increase in the number of Bitcoin addresses with a balance of at least 1 BTC. The milestone of one million addresses holding 1 BTC or more is a testament to the expanding Bitcoin ownership base. It signifies the growing confidence of investors and individuals in the cryptocurrency’s potential as a store of value and medium of exchange.
Bitcoin price decline and market volatility
During the past year, as Bitcoin experienced a significant decline of over 65% in its price, there was a notable increase in the number of wallet addresses holding at least one Bitcoin. This surge was particularly pronounced during two distinct periods: a sharp market crash in June and subsequent to November 11, which marked the collapse and subsequent bankruptcy filing of FTX.
Over the course of Bitcoin’s price decline from its November 2021 highs, approximately 190,000 individuals joined the ranks of “wholecoiners” by acquiring at least one whole Bitcoin, as reported by Glassnode co-founder Negentropic. Negentropic, who has a following of 54,000 on Twitter, emphasized that the optimal time to purchase Bitcoin is when there are widespread pessimism and market downturns.
Amidst a series of significant bank failures in the United States and the Federal Reserve considering a potential halt to interest rate hikes in the near future, Glassnode expresses its continued confidence in Bitcoin’s potential to reach a mid-term price of $35,000 since Bitcoin holders with at least 1 BTC reach 1 million. These factors contribute to Glassnode’s optimistic outlook for Bitcoin’s value.
Diverse ownership & considerations beyond individual users
Although the milestone of reaching one million Bitcoin wallet addresses is a noteworthy achievement, it is important to note that a single address does not always correspond to an individual. Numerous crypto investors maintain multiple Bitcoin addresses, and certain addresses are attributed to prominent institutions such as cryptocurrency exchanges and investment firms, which often hold substantial amounts of Bitcoin.
Based on data provided by CoinGlass, approximately 1.89 million Bitcoins, equivalent to a value of $50.7 billion, are currently held on major centralized exchanges like Binance and Coinbase, out of a total circulation of around 19 million Bitcoins.
In addition, Glassnode estimates that a significant portion of the circulating supply, around 3 million Bitcoins valued at $80.4 billion, is considered to be permanently lost. This accounts for approximately 17% of the total circulating supply. The estimate includes various factors such as Bitcoins sent to “burn addresses,” wallets with lost keys, and large accounts that have remained inactive for over ten years.
The milestone of one million Bitcoin addresses holding 1 BTC or more signifies a growing adoption and accumulation of Bitcoin among individuals and institutions. It highlights the increasing trust in Bitcoin’s long-term value proposition and its status as a store of value and medium of exchange.
While the milestone is a positive development, it is important to address the concentration of Bitcoin wealth and work towards further distribution within the ecosystem. Nevertheless, the growing number of addresses holding 1 BTC or more demonstrates the maturing Bitcoin ecosystem and solidifies its position as a mainstream asset class.
Looking ahead, the milestone sets the stage for the continued adoption and growth of Bitcoin. As more individuals and institutions recognize the benefits and potential of Bitcoin, the cryptocurrency continues to establish itself as a trusted and reliable form of investment and store of value. The milestone serves as a reminder of Bitcoin’s resilience and potential, encouraging further exploration and utilization of this innovative digital asset.