Kashif Raza, a prominent figure in India’s Bitcoin and cryptocurrency sphere, recently shared a Glassnode chart that provides valuable insights into the number of addresses holding one or more Bitcoins over time. The chart highlights the gradual development and progression of Bitcoin, which I will now explain.
More Than 1 Million Bitcoin Addresses
The chart, which begins in July 2017, offers a current perspective on the matter. During this period, we observe a general increase in the number of Bitcoin addresses holding at least one Bitcoin. The count, initially below 600,000 in mid-2017, steadily rose until reaching its peak in mid-2018. This rise can be attributed to the price surge of Bitcoin, which neared $20,000 towards the end of 2017.
Interestingly, despite significant price fluctuations after 2017, the graph shows that the number of addresses with one or more Bitcoin balances remained resilient. Even following the notable price drop in early 2018, these addresses remained relatively stable, fluctuating between 600,000 and 700,000 until 2019. This suggests a level of stability among Bitcoin holders and potentially a long-term holding behavior.
Sharp Increase in 2020 and 2021
In the cryptocurrency market, there are two possible outcomes: either you maintain a friendly relationship with this market or it imparts a lifelong lesson. In my opinion, the graph demonstrates that by 2020 and 2021, investors chose to stay 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 BTC experienced a surge, the number of addresses holding more than one BTC surpassed 900,000 in early 2021. This can be interpreted as investors accumulating more Bitcoin as its value increased.
Continuing to Stay Friends
The fact that investors did not sell during significant declines in Bitcoin indicates a high expectation of price appreciation. For instance, during the 2021 price correction, there was a slight decrease in the number of addresses, but it still remained above 800,000.
Furthermore, while Bitcoin’s price encountered further fluctuations throughout 2022 and 2023, the number of addresses consistently displayed an upward trend, albeit at a slower pace. By the beginning of 2024, the number of addresses holding at least one Bitcoin exceeded one million. This peak in the graph reflects investors’ continued friendship with Bitcoin and suggests that Bitcoin accumulation is spreading to a wider audience.
It is important to note that the information presented in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research. You can stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.
