In a major milestone for the bitcoin BTC -0.30% community, the number of unique addresses holding at least one bitcoin has surpassed 1 million, an all-time high. Additionally, addresses holding more than 10 bitcoins are also at their highest level since September 2019.
Amid this development, another noteworthy trend emerged this week: Bitcoin’s dormant supply hit an all-time high of 15.2 million coins, while exchange balances fell to their lowest point since January 2018.
These dormant coins have little to no transaction history in their transaction history. Wallets, indicating that Bitcoin holders are increasingly “HODLing” rather than selling, are anticipating future price spikes.
Roughly 146,000 bitcoins flow from centralized exchanges to illiquid wallets every month. According to Glassnode, this pattern may represent a gradual and steady accumulation phase for a particular group of holders over the next six months.
Additionally, it expects the stagnation period to last between 8 and 18 months, similar to previous cycles in Bitcoin’s history.
A surge in the number of addresses holding at least one bitcoin points to wider adoption of the cryptocurrency and growing confidence in its long-term value. Bitcoin’s decentralized nature and its limited supply appeal to investors looking to diversify their portfolios and hedge against volatility in traditional markets.
Despite recent market volatility and regulatory challenges, Bitcoin continues to attract interest from institutional investors and businesses. Several high-profile companies have publicly announced their Bitcoin holdings, furthering the asset’s legitimacy and global acceptance.
