Number of “whales” with a Bitcoin wallet balance of more than 10,000 BTC

The number of Bitcoin wallets with a balance of more than 10,000 BTC rose to 111 on Wednesday, up from a high of 2August 2019 and 11% higher than in early March.

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Increased interest from long-termholders and large investors are relevant in anticipation of halving and in the context of the difficult economic situation in the world - investors are looking for a safe financial haven against the background of an unprecedented and uncontrolled emission of new money by world powers.

Bitcoin supply is limited to 21 million coins, and monetary policy is programmed in advance to reduce the rate of issue by 50% every four years.

Therefore, many investors are increasingly beginning to regard bitcoin as an asset-refuge and protection against inflation (like gold).

The reason for the increase in the number of so-called “whale addresses” may be the upcoming halving, which historically gave rise to a new long-term bull trend.

Bitcoin halving occurs every four years and controls inflation, reducing mining rewards by 50%. On May 12, the reward for each block mined will decrease from 12.5 BTC to 6.25 BTC.

Many investors expect BTC to riseafter this event, as the asset will become more scarce to meet demand. Against this background, FOMO (fear of lost profits) begins to prevail in the market, and investors begin to stock up on bitcoins.

“At the first halving in November 2012, the pricerose from $ 11 to over $ 1,100 during the year. Then, after the second halving in July 2016, Bitcoin went up from $ 600 to over $ 20,000 by the end of 2017. ", Said George MacDon, managing director and co-founder of cryptocurrency and blockchain public investment company KR1 plc.

However, halving also means 50 percentminer income reduction. Thus, if the price cannot rise sharply after May 12, small and inefficient miners can stop working and start selling their assets to cover costs, which will lead to a drop in prices.

Note that wallets with a balance of more than 1000 BTC also grow:

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Like the total number of active wallets:

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At the time of writing, Bitcoin is trading in the $ 8,800 area, which is 130% more compared to the low of $ 3,867 reached on March 13.

Bitcoin is currently growing at an order of magnitude faster than the stock market and gold. While the cryptocurrency rose 21%, the precious metal rose only 12%.

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