Kashif Raza, a prominent figure in India’s Bitcoin and cryptocurrency sphere, recently shared an insightful Glassnode chart. The chart illustrates the number of addresses holding one or more Bitcoins over time. This graph provides valuable insights into the development of Bitcoin, which I will now explain.
More Than 1 Million Bitcoin Addresses
Starting from July 2017, this chart offers a current perspective on the matter. During this period, the number of Bitcoin addresses holding at least one Bitcoin generally increased. From below 600,000 in mid-2017, the number steadily rose until it reached its peak in mid-2018. This rise can be attributed to Bitcoin’s price surge, which almost reached $20,000 by the end of 2017.
Interestingly, despite Bitcoin’s significant price fluctuations after 2017, the graph demonstrates the resilience of the number of addresses with one or more Bitcoin balances. Even after the notable price drop in early 2018, the number of such addresses remained relatively stable, fluctuating between 600,000 and 700,000 until 2019. This suggests a level of stability among Bitcoin holders and a possible long-term holding behavior.
Sharp Increase in 2020 and 2021
In the world of cryptocurrency, you either become friends with the market or learn lifelong lessons. From what the graph shows us, it seems that by 2020 and 2021, investors chose to be friends with this market. This is evident from the increase in both Bitcoin’s price and the number of addresses holding more than one Bitcoin.
We all remember this period when Bitcoin soared above $60,000. As the value of BTC increased, the number of addresses holding more than one BTC reached 900,000 in early 2021. This can be interpreted as investors accumulating more Bitcoin as its value grew.
Continuing to Stay Friends
The fact that investors did not sell during significant declines in Bitcoin indicates their expectation of a price increase. For instance, during the price correction in 2021, there was a slight drop in the number of addresses, but it remained above 800,000.
As we move forward to 2022 and 2023, Bitcoin’s price experienced more fluctuations, but the number of addresses continued to show a steady upward trend, albeit at a slower pace. At the beginning of 2024, the number of addresses holding at least one Bitcoin surpassed one million. This peak in the graph reflects investors’ continued friendship with Bitcoin and suggests that Bitcoin accumulation is spreading to a wider audience.
Disclaimer: The information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
