In a significant milestone for Bitcoin ownership, the number of individual wallets holding at least one whole Bitcoin has surpassed the one million mark, indicating the enduring confidence of long-term investors in the cryptocurrency. This surge in ownership comes amidst the broader market fluctuations that have impacted Bitcoin’s price.
Bitcoin Wallets Reach Millionth Mark
Citing a recent data from Glassnode, the number of Bitcoin wallets holding at least one whole Bitcoin has experienced a substantial increase. According to the on-chain analytics tool, the figure crossed the one million mark, translating to a 20% growth since February of the previous year.
The surge was fueled by a rise in ownership following the collapse of the crypto exchange FTX between November and January when Bitcoin prices experienced a significant decline.
Limited Impact of BRC-20 Tokens on Ownership
The introduction of the ‘Bitcoin Request for Comment’ (BRC-20) tokens, which facilitate the creation of decentralized finance services, has not significantly impacted the number of wealthy Bitcoin holders. Since the rollout of the BRC-20 token in the last month of Q1, the number of newly established wallets possessing one Bitcoin has increased by a mere 30,000. The entry of these tokens has resulted in a spike in transaction fees on the Bitcoin blockchain, while the collective market capitalization of altcoins built on the Bitcoin network has risen significantly, reaching a staggering market cap of $1.6 billion.
Basically, BRC-20 is an experimental token standard built on the Bitcoin blockchain that allows for the creation and transfer of fungible tokens using the Ordinals protocol. Inspired by Ethereum’s ERC-20 tokens, BRC-20 tokens have their own unique features and functionalities. Although BRC-20 tokens gained significant traction in the early months of 2023, it is important to note that they are still in the experimental stage. As such, users are advised to approach them with caution and carefully consider the associated risks.
Bitcoin Transactions Shifting Focus
Recent market observations suggest a shift in Bitcoin transactions, with smaller wallets becoming more prominent. During the previous peak in 2019, larger transactions in the range of $1,000 to $10,000 dominated the Bitcoin transaction landscape.
In contrast, the latest data reveals that the largest cohort of Bitcoin transactions, accounting for 359,560 transactions, was composed of smaller amounts under $1. This indicates a significant increase in Bitcoin velocity, with users actively transacting the cryptocurrency rather than holding it in cold wallets for the long term.
The surge in Bitcoin ownership, with over a million individual wallets now holding one whole Bitcoin, showcases the unwavering confidence of long-term investors in the cryptocurrency. Despite the volatile market conditions that have impacted Bitcoin’s price, the resilience of Bitcoin holders shines through.
Furthermore, the limited impact of BRC-20 tokens on ownership indicates that the majority of Bitcoin holders remain committed to the original digital asset. As Bitcoin transactions shift towards smaller amounts, it suggests a growing trend of active usage and increased Bitcoin velocity. This signifies the evolving nature of Bitcoin as a currency and highlights its potential as a medium of exchange in addition to being a store of value.
As the cryptocurrency landscape continues to develop, Bitcoin remains a prominent player, being the OG of the bunch, capturing the attention of both long-term holders and active users alike.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.