- Bitcoin addresses holding more than 1000 BTC surging like crazy
- Bitcoin network stronger than ever
2018 was the year of brutal winter where Bitcoin price lost 84% of its value. Towards the end of the year, the leading cryptocurrency bottomed at $3,200.
However, Bitcoin investors saw this as an opportunity to buy the dip and accumulate more of the BTC as evident from the bitcoin addresses holding more than 1000 BTC chart.
In Q4 of 2018, Bitcoin addresses holding over 1000 BTC went from just above 1500 to about 1850. These addresses are now close to reaching 2100.
— glassnode (@glassnode) October 11, 2019
The number of addresses with >1000 BTC are moving in opposite direction of the price. As price surges, Bitcoin accumulation slows down while a drop in price drives people to start buying the flagship cryptocurrency.
This growth, analyst Willy Woo notes now matches the “early growth in Bitcoin’s network.”
This, he further points out is extremely bullish and imperative for BTC environment because unlike the early years of Bitcoin when mining 50 BTC was “easy as pie” and included some investment in hardware and electricity by people who were “just for fun trying out the software,” in 2019, 1000 Bitcoin “means an investment of ~$10m.”
But it’s not just these addresses that are seeing a spike, Bitcoin millionaires are also shooting up.
On June 1st, the cumulative sum in dormant Bitcoin addresses was $17.5 million.
“The number of ultra high net worth individuals (i.e. $50m+) in the world stands at around 150k. It strikes me that this population is probably in the same order of magnitude of people who had the interest and know how to mine BTC pre-2013, producing similar growth patterns,” said Woo.
This Woo said in his opinion is a “new renaissance” of Bitcoin that is powered by the capital influx of high new investors. According to him, this is “super bullish” because this has changed from the tech-savvy investors, the earlier ones in the game, who were bootstrapping the network.
There are currently 12,000 Bitcoin millionaires, notes Woo while 36 million millionaires on the planet, which means “it’s still early days if you believe BTC will be the new currency.”
Another bullish chart is that of the Bitcoin hash rate. It has also been going up since late 2018, hitting 110.19 Th/s on Oct. 11.
Last month, Bitcoin hash rate flash crashed that got the Bitcoin detractors started again. But that has been temporary as we are back to making new highs.