One Million Addresses Now Hold More than 1 BTC: A Milestone for Bitcoin Adoption

Bitcoin, the world’s largest cryptocurrency by market capitalization, experienced a wild ride in 2021, hitting a record high of $69,000 in November before tumbling down by nearly two-thirds. However, this price drop has created an opportunity for new investors to jump on the bitcoin bandwagon or continue stacking sats.

According to data from Glassnode, the number of addresses that hold more than 1 BTC ($26,800) has reached one million, with the most recent uptick in these “full bitcoiner” addresses occurring in February 2021 when the bitcoin price was in the middle of a correction.

Source: Glassnode

However, as the price of bitcoin continues to fluctuate, Dan Ashmore, head of research at Investoo Group, warns that holding a full bitcoin, which is currently equivalent to roughly half of the median US salary, could become unattainable again if prices soar. Ashmore noted that during the relentless bull market of the pandemic, there was a clear leveling off in the growth of addresses containing 1 bitcoin or more. But as bitcoin prices fell last year, the previous upward trajectory of the growth of these addresses resumed.

It’s important to note that one bitcoin address doesn’t always represent one person, and some individuals control multiple bitcoin addresses while some belong to institutions or groups of people. However, Ashmore believes that the 1 million milestone shows how deeply Bitcoin has established itself in the mainstream realm in recent years.

Despite the decentralization of the Bitcoin network, the distribution of wealth is more concentrated than commonly assumed, with only 7% of the supply (1.356 million BTC, worth $36.4 billion) distributed among nearly 46.5 million addresses with at least some bitcoin. On the other hand, the other 93% (18 million BTC, worth $482.7 billion) exists in the one million addresses that now own a full BTC, which represents about 2.1% of all non-zero Bitcoin addresses. However, these statistics are skewed as a considerable amount of BTC resides within crypto exchange addresses, which represent aggregate user holdings.

The fact that more people are holding a full bitcoin could indicate increased price stability, reflecting bitcoin’s maturation, as fewer holders could result in imbalanced buying and selling pressure, causing significant price fluctuations. Erik Saberski, vice president of data science at The Tie, points out that even distribution across financial systems leads to stability in associated asset classes.

In conclusion, the growth of full bitcoiner addresses highlights the deepening adoption of bitcoin in the mainstream and the possibility of increased price stability. However, the long-term impact of this trend on the cryptocurrency market remains to be seen.

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