While Bitcoin (BTC) is experiencing a decline amid the ongoing market slump, a steady new demand is entering the space.
Despite the price drop, obtaining a full 1 BTC is becoming more challenging for new buyers. This indicates a shift in accessibility to the asset and investor behavior.
Why owning 1 Bitcoin is considered a rare achievement
Glassnode, a blockchain data and intelligence platform, reported a 1.0% increase in supply held by first-time buyers. Over the past five days, it rose from 4.88 million to 4.93 million BTC, indicating new demand.
While the recent increase in Bitcoin demand is promising, acquiring the asset requires significant capital at this time, which may not be available to many investors. A report from CoinGecko highlighted a decline in the number of wallet addresses holding more than 1 BTC, aligning with the asset's price increase.
The report revealed that only about one million addresses globally hold one or more Bitcoins. Most of these holders accumulated Bitcoin before 2018. That was when prices were very low, especially in early 2017 when Bitcoin traded around $1,000.
CoinGecko noted that from 2010 to 2017, these addresses grew from 50,000 to 700,000. However, from 2018 onwards, only an additional 300,000 addresses were added. This raises the total to just over a million today.
The report mentioned that "when Bitcoin surpassed $100,000, this meant it became 100 times more expensive to become a full owner compared to 2017. We also note that the number of full owners actually declined after 2024, coinciding with the approval of Bitcoin ETFs and institutional adoption."
CoinGecko suggested that the rise of institutional investors has contributed to a greater concentration of Bitcoin wealth among the wealthiest individuals. This trend may explain the decrease in the number of full coin holders, as some early Bitcoin holders, who accumulated their assets before 2018, may be selling their holdings to these institutional buyers for long-term profits.
Furthermore, the report pointed out that after accounting for lost coins, exchange reserves, and institutional holdings, less than 4 million BTC theoretically remains available for acquisition by individuals. This shortage highlights the increasing challenge of achieving the status of 'full coin holder,' a milestone that may now carry more psychological importance than operational.
However, CoinGecko clarified that partial ownership can represent significant wealth as Bitcoin's price rises.
The report added that "the most optimistic price models for Bitcoin suggest we are heading towards a reality where individual coins could reach $500,000 or even $1 million. If those predictions prove accurate, owning even 0.1 Bitcoin (valued at $50,000-$100,000 at those prices) could represent significant wealth."
Industry leaders are also redefining the concept of owning a full Bitcoin. Changpeng Zhao (CZ) previously suggested that 0.1 BTC could surpass traditional benchmarks like owning a home, making it the new American dream. This shift reflects changing perceptions as Bitcoin matures.
CZ stated that "the current American dream is owning a home. The future American dream will be owning 0.1 BTC, which will be worth more than a home in the United States."
At the same time, another factor that could influence investor behavior besides price is the decline in Bitcoin's volatility. Since 2022, BTC has shown less volatility than large-cap tech stocks like Nvidia.
Ecoinometrics revealed that "since 2024, despite reaching new levels and undergoing a significant correction, volatility has continued to decline. It is now near a five-year low. This is exactly what you would expect from a mature asset. The lower the volatility, the more Bitcoin becomes investable by institutional funds."
This stability aligns with expectations for established assets. However, it contrasts with the high-risk appeal and high rewards that attract many individual investors.
