The Bitcoin network experienced a momentous occasion on Friday of last week. The number of Bitcoin wallets addresses that possess at least one Bitcoin core token in its entirety has crossed one million for the very first time in the history of Bitcoin.
The consistent increase in the number of Bitcoin wallets referred to as “wholecoiners,” which resumed in 2022 after pausing in 2020 and 2021, coincides with a rise in the number of wallets holding at least 0.1 and 0.01 BTC, as well as a continued rise in the number of wallets with a balance that is not zero. This rise comes amid a continued rise in the number of wallets holding at least 0.1 and 0.01 BTC.
Those wallet cohorts currently have 4.367 million, 12.032 million, and 46.715 million members, respectively, which are all at or very close to record highs.
The more equitable distribution of the Bitcoin supply is the result of new Bitcoins continuing to be mined (at a current pace of approximately 6.25 per 10 minutes as each block is added to the chain) and distributed among the miners, with these currencies eventually finding their way onto the market. The rate at which new Bitcoins are created is roughly 6.25 per 10 minutes.
As more and more individuals become interested in Bitcoin and start investing. Higher demand drives the price up (in the long-run, anyway), which encourages early Bitcoin investors and adopters who have a large stash to start distributing their holdings. This phenomenon also arises as a result of the growing acceptance of Bitcoin by society as a whole.
According to the various patterns that have emerged in the growing rate of the number of wholecoiner wallets. In the most recent years, this group of wallets may be regarded by some as being representative of “smart money.
Those investors who hold 1 Bitcoin or more are more likely to be considered smart money than, for example, the ordinary investor who just owns a few hundred dollars worth of BTC. Smart money investors are well knowledgeable about the market and/or actively participate in it.
During high average price for Bitcoin in 2021 and the parabolic bull run that occurred in late 2020. The growth in the number of wholecoiner wallets reached a plateau and even dropped into negative territory at some points.
This would imply that wholecoiners were selling their coins to smaller cohorts in order to profit from the bull market. The numbers of which generally maintained increasing during the duration of the bull market.
The growth rate of the number of wholecoiners didn’t really begin picking up again until June 2022. When the price of Bitcoin fell back below $30,000. It then took off in November when the collapse of crypto exchange FTX spurred a rush among Bitcoin investors to assume self-custody of their holdings. Currently, the number of wholecoiners is at a record high.
It is possible to draw the conclusion that “smart money” is continuing to “buy the dip”. From the fact that there have been a consistent upward increase in the number of wallets holding one bitcoin.
Regardless the fact that the largest crypto in the world has had a phenomenal start to the year. (BTC was last up over 65% year-to-date), the price of one BTC is still approximately 60% lower than its record high in 2021, which was somewhere around $69,000. The current price is in the low twenties of thousands of dollars.
There is a chance that a bull market for Bitcoin has returned, but the uptrend is still very much in its infancy.
And when the growth rate of the number of wholecoiner wallets begins to slow down or perhaps begins to reverse, that could be an indication that the bull market is maturing.
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