bitcoin addresses

Bitcoin Addresses with more than $1 Million Go Parabolic

As the year nears the end, Bitcoin (BTC) has given pundits, investors, and traders an early Christmas present by crossing the $22,000 mark for the first time in its history. This price rally has given the crypto space all the reason to smile about because it is hovering around $22,900 at the time of writing, according to CoinMarketCap.

Glassnode has added a new wrinkle to this price surge by noting that BTC addresses holding more than $1 million increased by 150% to 66,540. The onchain data provider tweeted:

“The number of Bitcoin addresses holding at least $1M USD has gone parabolic. It increased by 150% to 66540 addresses. Why? BTC crossing $20k has turned all early miner addresses (50 BTC block rewards, unspent or lost) into millionaire addresses.”

These statistics suggest that after the Bitcoin price went through the roof and surpassed the $20,000 mark, earlier miner’s BTC addresses were flipped into instant millionaire wallets.

In recent weeks, BTC has been trying to surpass the all-time high (ATH) price of $20,000, but this rally was suppressed by the power of profit-takers who often pushed the price down.

This time around, the narrative is different, as suggested by crypto analyst Willy Woo. He stated that the reason behind the present Bitcoin bull run is due to the immense amount of FOMO (fear of missing out) buying in the market, which has overpowered profit takers. Institutional investors have been recipients of FOMO as they have been on an investment frenzy. Earlier this month, they purchased Bitcoin worth $334.7 million in a span of a week.

Woo’s sentiments are echoed by Jimmy Song, a leading Bitcoin advocate, who recently hinted that the current price surge is the tip of the iceberg on what awaits the top cryptocurrency because a time will come when BTC’s daily candle will gain by more than $40,000.

Number of Bitcoin Addresses with Non-Zero Balances Hits ATH

Recent data from crypto data analytics provider Glassnode reveals that the total number of Bitcoin addresses with non-zero balances has hit a new all-time high (ATH) of 37,125,166.

While this data could not reveal whether a particular investor owns one or more addresses, the 37 million addresses is a reflection of how far the Bitcoin ecosystem has grown from the days where asset managers and financial advisors called it a speculative asset, to that which they are all scrambling to be a part of.

By this time last year, Bitcoin was trading well below $10,000 per coin, and going by the current price or valuation of $59,062.96, the coin has grown by more than 816% year-over-year. In a recent comparison with other institutional assets made by Messari, Bitcoin was adjudged to be the biggest gainer of all in the first quarter of 2021, lending more credence to the attractiveness of the cryptocurrency as a deflationary asset of choice.

Morgan Stanley, Goldman Sachs to Offer BTC Services

The accumulation of Bitcoin or the show of interest to stack up on what many now call the “digital gold” is not only gaining traction amongst the retail odds on social media, big multinational investment banks including Morgan Stanley and Goldman Sachs are gearing up to begin offering Bitcoin services to their clients.

While the Goldman Sachs position is the latest in the news, many Bitcoin proponents believe that the offering of Bitcoin services by these firms, no matter the form they take will help open broader or mainstream access to the cryptocurrency and complement the earlier purchases made by MicroStrategy Incorporated, Tesla Inc and Square Inc amongst others.

Active Bitcoin Addresses Hit a 14-Month Low as Long-Term BTC Holders Continue Accumulating

Bitcoin dropped below the psychological mark of $30K for the first time since January to hit lows of $28K in the last 24 hours. Nevertheless, the leading cryptocurrency has gained momentum. The latest price was up by 7.47% at $34,013 during intraday trading, according to CoinMarketCap.

Despite this surge, the number of active BTC addresses reached a 14-month low of 43,639.482, as revealed by on-chain metrics provider Glassnode.

Bitcoin’s recent renewed effort to breach the $40,000 level was dented by China’s strengthened crackdown of crypto mining and related trading, triggering FUD (fear, uncertainty, and doubt) among investors.

As a result, on-chain transactions nosedived to a two year low of 8,843.054, whereas BTC price has been down by 15.52% in the last 7 days.

According to data from encrypted data aggregator Skew, Bitcoin is currently down nearly 46% this quarter.

Data shows the quarterly returns of Q2 Bitcoin this year have reached the same level as the first quarterly bear market in 2018. Bitcoin fell by 45.91% in Q2 this year, slightly better than the 49.89% loss of Q1 in the 2018 bear market.

Long-term Bitcoin holders are still at a record-high

Despite the falling Bitcoin price, long-term holders are not relenting in their quest to accumulate more coins because they are still at an all-time high. Data science firm IntoTheBlock acknowledged:

“Just a reminder that despite the recent downwards price action, the number of Bitcoin hodlers is currently at an all-time high. 58.41% or 22.22 million addresses are holding BTC for more than one year.”

Market analyst Michael van de Poppe echoed these sentiments. He explained:

“Long-term holders of Bitcoin are accumulating again, heavily. Short-term holders of Bitcoin are selling again, heavily. It always goes like that.”

As the battle between long-term and short-term Bitcoin holders continues, it remains to be seen how the leading cryptocurrency plays out going forward.

Bitcoin’s Long-Term Address Activity Rebounding, Signaling a Breakout sign

Bitcoin’s address activity has emerged to be an essential metric that shows participation in this market. Santiment noted that BTC long-term address activity surged to levels witnessed in mid-April, which could be a breakout signal.

The on-chain metrics provider explained:

“Bitcoin’s long-term address activity is showing signs of rebounding back toward its levels seen around its mid-April’s all-time high. This is one of our top leading indicators to watch for a breakout signal.”

Santiment has previously noted that address activity was a vital metric to watch for hints on whether Bitcoin would cross $50K or fall below $40K, as daily BTC addresses edged closer to the 1 million marks.

Bitcoin has been ranging between $45K and $48K for days now after an upward momentum saw the top cryptocurrency breach the psychological price of $40,000, which had emerged to be a hard nut to crack.

Nevertheless, on-chain analyst Will Clemente believes a major impulse may be witnessed because the illiquid supply shock ratio increases. He pointed out:

“Illiquid Supply Shock ratio has been a good leading indicator over the past few months. Impulses in both directions have resulted in price action following. As the metric continues to grind slowly upward, currently at levels prev. 58K BTC, watching for another major impulse.”

Bitcoin miners experience higher revenues

Bitcoin miners have not been selling their holdings because of higher revenues, given that they have found the right footing in places like Kazakhstan, Iran, and the U.S. after shifting their base from China, where Bitcoin mining has become unfriendly.

Clemente noted:

“Miner revenue (in BTC terms) per hash soared after the great China mining migration. Less competition = higher profitability for the miners still operating. As hash slowly begins to come back online, the impulse in BTC/hash is slowly fizzling.”

Glassnode echoed these sentiments. The crypto analytic firm suggests Bitcoin miner revenue per hash had climbed by 57%, returning to mid-2020 levels as the great migration continued.