Bitcoin and the cryptocurrency market have recently shown a notable trend. According to reports, there is a significant increase in Bitcoin wallets containing at least $1000 worth of BTC. A report published by Fidelity Digital Assets on Monday states that since the beginning of 2024, the number of such wallets has increased by 20%, reaching a record level.
2023 Figures Have Doubled
With an increase noted by Fidelity, the number of wallets in 2023 has doubled from 5.3 million to 10.6 million. Currently, these 10.6 million wallets each hold at least $1000 in Bitcoin. Even more noteworthy is that this increase continues among addresses with smaller amounts. As of March 13, the number of such wallets has nearly doubled, showing a 101% increase.
Despite the upward trend in Bitcoin prices, the continuous increase in addresses with smaller amounts may indicate growing interest and adoption of Bitcoin. However, the Fidelity report notes that price increases and address consolidation could be influencing these figures.
Decrease in Bitcoin Held at Exchanges
Moreover, the report also highlights a decrease in the amount of Bitcoin held at exchanges. Various exchange failures and other problematic practices in 2023 have increased the popularity of self-custody among Bitcoin owners. In the first quarter of 2024, exchange balances showed a 30% decrease from all-time highs.
The report also discusses changes in the net position of long-term Bitcoin holders. At the end of 2023, this group likely continued significant sell-offs influenced by Bitcoin reaching all-time high levels.
However, these sell-offs are different from past cycles. Accordingly, it shows that investors perceived Bitcoin as overly valuable before the halving. Currently, there are approximately 124,001 BTC worth of exits challenging the traditional Bitcoin halving model.
Current Bitcoin Price Situation
At the time of writing, the price of BTC is at $63,769. Bitcoin had started the day above $64,000. However, it has since pulled back to around $63,200.
Although expectations are high for Bitcoin post-halving, historical data also shows that Bitcoin typically trends downward in May.
