The number of Bitcoin addresses holding over 1 BTC has been increasing for 11 consecutive years
According to Glassnode, the number of Bitcoin addresses holding more than 1 BTC has increased for 11 consecutive years. This trend shows that great confidence in Bitcoin from retail investors is increasing. This presents a positive medium to long term outlook.
The number of Bitcoin addresses holding 1 BTC | Source: Glassnode
Glassnode: Retail investors have also been accumulating Bitcoin throughout the past few years
From famous billionaires on Wall Street to mass corporations, institutional investors have been buying large amounts of BTC. For example, MicroStrategy bought Bitcoin worth $ 425 million and described it as the company’s primary treasury asset. Institutions now see BTC as a store of value and a hedge against inflation, which has become a trend in the traditional financial sector.
Multiple data points indicate institutions are buying BTC. Under Grayscale’s control, net assets, CME’s open interest rate, and LMAX’s trading volume are some of the most cited data. However, there isn’t a lot of data to show the growing adoption and accumulation of Bitcoin from retail investors. Exchange volume can be used to gauge overall market performance, but whales also tend to use exchanges.
The number of Bitcoin addresses holding 1 BTC is a practical way of measuring retail investor confidence in BTC over a long time frame. The data shows that the number of individuals holding at least 1 BTC has increased significantly since 2009.
More importantly, the number of addresses holding 1 BTC has been steadily increasing each year. This trend is optimistic as Bitcoin has seen major corrections along the way, most notably in 2018 and March 2020.
The data clearly demonstrates that despite the major corrections, the overall sentiment among retail investors has remained intact throughout the past 11 years.
Over the past 48 hours, BTC price has suffered a major short-term drop, and some analysts fear it will hurt market sentiment. While a drop may dampen market sentiment, a BTC drop happened as the US stock market saw a correction. Hence, the market can understand BTC’s decline as a market-wide risky sell-off.
You can see the BTC price here.
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