While Bitcoin (BTC) is experiencing a historic loss of value, and trying somehow to keep up, the number of addresses with more than one Bitcoin (BTC) has reached an all-time high. A data that contrasts with the level of volatility of Bitcoin (BTC). Thus, for many buying now is an opportunity to seize because of the low price of Bitcoin (BTC).
A record number of holders of more than one Bitcoin (BTC)
On May 16, 2022, the number of Bitcoin (BTC) addresses with one BTC and more hit a new all-time high of 841,224, according to data provided by blockchain analytics platform Glassnode. The increase in the number of holders coincided with bitcoin (BTC) falling more than 55 percent from the all-time high of nearly $68,000 recorded in November last year.
Who are those who bought more than one Bitcoin (BTC)?
Even with a high level of volatility, buying BTC is still prohibitively expensive for most retail investors. Thus, the price crash may have prompted large investors, known as whales, to increase their holdings of BTC when its value fell. However, although whales have accumulated a large share of the asset , most Bitcoin (BTC) circulates among retail investors who own portions of the “king of cryptos”. It's also worth remembering that due to Bitcoin's anonymity, it's nearly impossible to determine the specific owners of addresses holding at least one coin.
Bitcoin (BTC) a new digital gold?
The accumulation of Bitcoin (BTC) by whales can also be interpreted as an indicator that the asset is increasingly seen as a store of value in the context of network growth. The concept of Bitcoin (BTC) as a store of value, or digital gold, has been explored many times, especially with rising inflation.
A buying opportunity for the “King of Cryptos”?
In general, a drop in price presents a buying opportunity as selling could lead to losses, as Glassnode points out . As of May 16, the platform reports that the number of Bitcoin (BTC) addresses making profits on a seven-day average hit a 21-month low.
The low price of Bitcoin (BTC) may encourage the purchase of it. For the moment the sale is at a loss, keeping its assets aside until the price goes up remains a more attractive alternative. Especially since the price of Bitcoin (BTC) could rise in the coming months . In the meantime, the number of addresses with more than one Bitcoin (BTC) will probably increase, as long as the price of the latter does not rise.
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