Bitcoin

The Number Of Wallet Addresses Holding 1,000 Bitcoins Is Approaching The Lowest Level

The number of active Bitcoin (BTC) wallet addresses will give us an overview of the behavior of short and long-term investors. Recently, these figures give us a not-so-optimistic view of this coin.

The amount of BTC wallet addresses with a balance from 0.1 BTC just set up a new ATH today.

Source: Glassnode

At first glance, more active wallets with (albeit minimal) balances indicate that the network is still crowded with investors. But that is a poor view if we ignore the number of wallets containing more than 1,000 BTC, also known as HODLers.

Source: Glassnode

A balance of 1,000 BTC is huge for an individual. It represents the main capital flow of the market. And today the amount of Bitcoin addresses with balances from 1,000 has hit a 6-month low. It shows that whales are leaving the market.

Combining the two above information, we can see whales are gradually selling to retail investors. Investors with little capital to buy cautiously with DCA plan, whales keep discharging when BTC recovers. However, investors with little capital are DCA in losses.

Today is also the day that marks the number of Bitcoin wallet addresses that are losing money making a new high in the price history.

Source: Glassnode

Nearly 20 million wallet addresses are losing money (on a 7-day average), which is more than the black swan period of March 2020. From this data, it can be confirmed that there has been no downtrend as damaging as the 2022 downtrend.

In previous downtrends, the number of losing Bitcoin wallet addresses only hit a high for a short period and then plummeted. But this 2022 downtrend also marks the longest and longest continuation of the above data at a high level. Even so far, this number of losing addresses has not decreased.

The above data warns retail investors to consider holding Bitcoin in their wallets. At the time of writing, BTC is trading at $18,929.

BTC daily chart. Source: CoinCu

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.