The milestone of one million wallet addresses holding at least 1 BTC was reached last Friday, marking a first in Bitcoin’s history. This continued growth in the number of “wholecoiner” wallets has been accompanied by an increase in wallet addresses holding 0.1 and 0.01 BTC, now standing at 4.367 million and 12.032 million, respectively. Overall, the number of wallets with a non-zero balance has reached a staggering 46.715 million, approaching all-time highs.
This more egalitarian distribution of Bitcoin comes amidst ongoing mining activities, with coins being regularly distributed among miners and put into circulation. It is worth noting that Bitcoin’s adoption has been steadily increasing, leading to higher demand and driving prices up in the long run. As a result, early investors who possess large Bitcoin holdings find themselves in a position to distribute their assets gradually.
Some experts may even argue that wholecoiner wallets could be considered “smart money.” So, what does this entail? Generally, smart money refers to investors who possess a higher level of market knowledge or commitment. Those possessing 1 BTC or more are likely to align with this definition, as compared to an average investor owning a few hundred dollars worth of Bitcoin.
An interesting observation could be made during the late 2020 bull run, where the growth of wholecoiner wallets stalled and even reversed at times. This suggested that wholecoiners were potentially offloading their holdings during the bull market and selling to the smaller wallet holders, whose numbers grew steadily throughout the same period.
It wasn’t until June 2022 when the Bitcoin price dipped below $30,000 that the number of wholecoiners began to grow significantly again. This growth took off further in November, following the collapse of crypto exchange FTX, which caused a rush among investors to self-custody their Bitcoin assets. This trend could be interpreted as an indication that smart money is buying the dip.
Although Bitcoin’s performance in 2022 has been impressive, with a year-to-date increase of around 65%, the price still hovers around the low-$27,000s, marking a 60% decrease from its 2021 record high of $69,000. Consequently, the current Bitcoin bull market is arguably still in its infancy.
In conclusion, the growing number of wholecoiner wallets could signal the continued investment of the so-called smart money in Bitcoin. However, any potential slowdown or reversal in this growth might indicate a maturation of the bull market.
Source: Cryptonews
