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May 13 marked a significant milestone in the world of Bitcoin as the number of wallet addresses holding one whole BTC or more surpassed one million, according to data from Glassnode. This achievement comes as Bitcoin prices experienced a steep decline over the past year, attracting buyers who took advantage of the lower prices.
The surge in the number of wallet addresses holding one Bitcoin or more coincided with the market crash in June last year and the collapse of FTX, which filed for bankruptcy on November 11, 2021. During this period, the price of Bitcoin dropped by more than 65%, leading to a notable increase in the number of “wholecoiners.”
Glassnode reported the addition of approximately 190,000 new “wholecoiners” since early February 2022, when Bitcoin prices started to decline from their highs in November 2021. Referring to the market downturn, Co-founder of Glassnode, Negentropic told his 54,000 Twitter followers,
“The ideal time to buy Bitcoin is when there is blood in the streets.”
Rise of Bitcoin
The recent collapses of major banks in the United States, coupled with the Federal Reserve’s consideration of pausing interest rate hikes, have further contributed to the belief that Bitcoin has potential. Glassnode expressed confidence in Bitcoin reaching a price of $35,000 in the mid-term due to these factors.
It is important to note that while the milestone of one million addresses is noteworthy, a single Bitcoin wallet address does not always represent an individual. Many crypto investors possess multiple Bitcoin addresses, and some addresses belong to prominent institutions such as cryptocurrency exchanges and investment firms, which hold significant amounts of Bitcoin.
Data from CoinGlass, a crypto analytics provider, reveals that out of the approximately 19 million Bitcoin currently in circulation, 1.89 million BTC (worth $50.7 billion) is held on major centralized exchanges like Binance and Coinbase.
In addition, Glassnode estimates that a staggering 3 million BTC (worth $80.4 billion), accounting for 17% of the total circulating supply, is “lost forever.” This estimation is based on various factors, including BTC sent to “burn addresses,” wallets with lost keys, and large accounts that have remained untouched for more than a decade.
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