Thursday, May 30, 2024

Hyperbitcoinization is coming, says Bitcoin OG as ‘wholecoiners’ hit a million

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Bitcoin (BTC) crossed a huge threshold this month – and while it doesn’t involve price, it does involve “millions”.

Data from on-chain analytics firm Glassnode confirms that as of May 18, there are more than 1 million addresses containing at least 1 BTC.

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It’s been a long time coming and getting a lot of attention on social media, and it’s finally time – there are a million entities that own a whole bitcoin.

These “wholecoiners” have been accumulating steadily since mid-2021, Glassnode shows, and the upward trend in 1 BTC wallets has seen almost no reversal since then.

However, the trend accelerated in 2022, after starting the year with 814,000 wholesalers and ending it with 978,000 wholesalers – an increase of 20%.

Adam Back, CEO and Co-Founder of Bitcoin Blockstream, recently brought up the issue of “hyperbitcoinization.”

He said that if the current trend continues, the growth in the price of BTC will soon make buying it not just a luxury, but something completely unattainable.

This will happen ya chirpBecause 10 million people trying to buy 1 bitcoin over the course of a few years could push the price out of reach.

“And many of the current assholes don’t sell,” he continued.

“For example, very few of the last full coins will be reselling, they may move to their next target to get more bitcoins, and most of them try to buy more!”

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Bitcoin: Number of addresses with balance chart ≥ 1. Source: Glassnode

As Cointelegraph reported, existing bitcoin investors who are long-term participants in the market have broadly resisted the urge to sell through the recent bear market and subsequent price recovery.

At the same time, an uptick in short-term equity holders, or speculators, in 2023 has fueled some excitement about the birth of a new bull market for bitcoin.

Whale numbers will stop declining in 2022

Meanwhile, Glassnode data shows that at the other end of the spectrum, whales’ wallets have become stagnant.

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Entities between 1,000 BTC and 9,999 BTC are now showing signs of recovery after the decline from mid-2022 onwards.

On the other hand, 10,000+ BTC entities remain in the range entered after the FTX crash last November. There are currently 117 such entities.

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Bitcoin: Number of addresses with balance ≥ 1k chart. Source: Glassnode

Observers, such as physical resource watchers, often note that the largest groups of whales still exert the greatest influence on the price movement of BTC thanks to their trading activities.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.