The number of people who own bitcoins and the behavior of "bitcoin whales" have always been a subject of interest in the cryptocurrency community. Using on-chain data from Glassnode, we can gain insight into trends in Bitcoin ownership and how different groups of owners respond to market conditions. Here are some key takeaways:
1. Total number of Bitcoin addresses: As of May 2023, the total number of Bitcoin addresses with balances greater than or equal to 0.01 BTC reached an all-time high of 12,051,180. This number shows the popularity of Bitcoin because it reflects the number of individual wallet owners. It's worth noting that this figure only includes wallets with at least 0.01 BTC, and there are likely more Bitcoin holders with smaller balances.
2. Short-Term Fluctuations: While the long-term trend for the number of Bitcoin addresses that hold at least 0.01 BTC is constantly increasing, there are also short-term fluctuations. For example, after the price crash in 2019, the number of such wallets decreased for a short time. However, it quickly recovered and continued to grow steadily, even during periods of negative market sentiment.
3. Activity among Bitcoin whales: The behavior of Bitcoin whales, defined as wallets holding more than 1,000 BTC, tends to be more sensitive to short-term market conditions. Glassnode data shows that the number of "whale" addresses reached a five-month high of 1,686 on May 17, coinciding with an increase in the number of smaller addresses. However, it is important to note that the number of "whale" addresses has not yet exceeded its peak before the FTX crash, unlike smaller addresses.
4. Market Sensitivity: Smaller Bitcoin addresses appear to be less sensitive to short-term market fluctuations and continue to grow in number regardless of market conditions. Bitcoin whales, on the other hand, are more sensitive to price movements, buying and selling based on short-term predictions.
In conclusion, Glassnode's data suggests that Bitcoin adoption continues to grow and smaller wallet addresses continue to increase, even in adverse market conditions. However, Bitcoin whales are more attuned to market volatility and their behavior is affected by short-term price fluctuations. Despite the difference in sensitivity, both groups contribute to the overall dynamics of bitcoin ownership and trading.
