January 31, 2023

The number of bitcoin wallets with a balance of 1000 BTC increased by 30%

The number of bitcoin wallets with a balance of 1000 BTC increased by 30%

The list of addresses containing more than 1000 Bitcoins (Bitcoin Rich List) has grown by 30% over the past 12 months. About This is reported by Coindesk with reference to data from the analytical company Coin Metrics. Even if you exclude (confirmed) addresses of cryptocurrency exchanges, the data will display a similar increase.

2148 addresses contain more than 1000 bitcoins, which is only 0.01% of all bitcoin addresses (according to BitInfoCharts).

The number of bitcoin wallets with a balance of 1000 BTC increased by 30%

As can be seen from the above graph, onOver the past 12 months, the growth of large bitcoin addresses has been rapid. Analyst Willy Wu believes that the reason for this could be the arrival of large investors in the market:

“Two options are possible: Investors with large capital have come, or it may be the practice of cold storage of bitcoins on cryptocurrency exchanges or the introduction of other custodial solutions. The last explanation cannot be excluded, but it does not coincide with other data that we have regarding the time frame. I still hold the first option. "

He drew attention to the fall of bitcoin from $ 6400to $ 3200 in the last quarter of 2018. Experienced investors most likely took advantage of the price reduction to buy bitcoin at low prices, which led to the growth of large bitcoin addresses.

Other observers, however, are not inclined.equate the growth in the number of such bitcoin addresses to the growth in the number of large players in the market. In the end, an investor can transfer 50,000 bitcoins from one address to 50 or 5,000 different addresses. In addition, cryptocurrency exchanges that store the bitcoins of millions of users, in order to ensure safe storage, can distribute coins to various addresses.

“Basically, these are exchanges ... and the number of BTC on exchanges, and the number of exchanges / custodian services is growing”“Said trader and analyst Alex Kruger.

He noted that the volume of transactions within the network wasrelatively low since September 2018 - a sign that the list of large addresses has grown due to exchanges, which usually use a low number of transactions on the network to redistribute bitcoins.

However, it is impossible to know exactly who is behind these addresses - the stock exchange or a major investor.

In addition, as shown in the diagram below, if you remove the known addresses of the crypto exchanges, the number of large bitcoin addresses will still show an increase of almost 30%.

The number of bitcoin wallets with a balance of 1000 BTC increased by 30%

This confirms Wu’s hypothesis that the arrival of large people’s investors was the main reason for the increase in the number of these addresses.

According to Qiao Wang of the analytical company Messari, this growth can also demonstrate the continued distribution of bitcoins.

“In the beginning it was Satoshi, then only a few early miners who owned all bitcoins. But over time, their share decreased, and other people entered the market ”“Wang said.