Kashif Raza, a prominent figure in India’s Bitcoin and cryptocurrency industry, recently shared a Glassnode chart that provides interesting insights into the number of addresses holding Bitcoin over time. This chart reflects the gradual development and evolution of Bitcoin, which I will explain in more detail.
More Than 1 Million Bitcoin Addresses
The chart, starting from July 2017, is highly valuable as it offers a current perspective. During this period, we observe a general increase in the number of Bitcoin addresses holding at least one Bitcoin. Initially, the number was below 600,000 in mid-2017, but steadily rose until it reached its peak in mid-2018. This growth can be attributed to the price surge of Bitcoin, which neared $20,000 by the end of 2017.
Interestingly, despite significant price fluctuations after 2017, the graph reveals that the number of addresses with one or more Bitcoin balances remained resilient. Despite a notable price drop in early 2018, the number of such addresses remained relatively stable, hovering between 600,000 and 700,000 until 2019. This suggests a level of stability among Bitcoin holders and potentially indicates a long-term holding behavior.
Sharp Increase in 2020 and 2021
In the volatile cryptocurrency market, one can either maintain a friendly relationship with it or learn lifelong lessons. Based on the graph, it appears that investors in 2020 and 2021 are opting 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 surpassed $60,000. As the price of BTC climbed, 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 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, although there was a slight drop in the number of addresses, it remained above 800,000.
Throughout 2022 and 2023, Bitcoin’s price experienced further fluctuations, but the number of addresses continued to exhibit a steady upward trend, albeit at a slower pace. By 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.
Please note that the information presented in this article should not be considered 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.
