Bitcoin has reached a significant milestone this month with over 1 million addresses holding at least 1 BTC, according to on-chain analytics firm Glassnode. These addresses are referred to as “wholecoiners” as they hold a whole Bitcoin. Glassnode data shows that these “wholecoiners” have been steadily accruing since mid-2021, and the upward trend in 1-BTC wallets has seen almost no reversal since. In 2022, the trend accelerated, having started the year with 814,000 wholesalers and finishing it with 978,000, an increase of 20%.

Hyperbitcoinization soon to come?

Adam Back, CEO and co-founder of Bitcoin firm Blockstream, made a case for “hyperbitcoinization” soon to come. He argued that if the existing trend continues, BTC price growth would soon make buying it not only a luxury but something unattainable altogether. This would happen because “10 million people trying to buy 1 BTC over a few years would push the price out of reach,” he tweeted. Back continued, “And many current hodlers are not selling. Eg very few of the recent wholecoiners would re-sell, probably moving up to their next target for extra bitcoin, most are trying to buy more!”

Existing Bitcoin investors who are long-term market participants have broadly resisted the urge to sell through the recent bear market and subsequent price recovery. At the same time, an uptick in short-term holders, or speculators, in 2023 has got some excited about the birth of a new Bitcoin bull market.

Whale wallets stagnant

Glassnode data shows that at the other end of the spectrum, whale wallets have become stagnant. Entities with between 1,000 BTC and 9,999 BTC are now showing signs of recovery after falling from mid-2022 onward. 10,000+ BTC entities, on the other hand, remain in a range entered following the FTX collapse last November. There are currently 117 such entities. Observers, such as monitoring resource Material Indicators, often note that the largest classes of whales still exert the most influence over BTC price action thanks to their trading activities.

Bitcoin has reached a significant milestone with over 1 million addresses holding at least 1 BTC. Adam Back has made a case for “hyperbitcoinization” soon to come if the existing trend continues. The whale wallets have become stagnant, and the largest classes of whales still exert the most influence over BTC price action thanks to their trading activities.

Analysis

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