Although Bitcoin (BTC) continues to struggle in its attempt to recapture last year’s highs, the latest data shows that addresses with at least one BTC are on the rise.
Why are Bitcoin addresses continuously increasing while their price is falling?
On the Twitter account @Watcher.Guru, the current number of wallet addresses with more than 1 BTC has reached 844,906.
Cryptocurrencies are growing in popularity and the community of crypto users is expanding. There are many countries in the world that have allowed the circulation of cryptocurrencies, the application of cryptocurrencies is also increasing and among cryptocurrencies, BTC is one of the most stable.
Bitcoin accumulation can also be interpreted as an indicator that the asset is increasingly viewed as a store of value amid network growth. The concept of Bitcoin as a store of value, or digital gold, has been explored numerous times, especially as inflation rises.
BTC addresses make profits drop
It is very difficult and still does not have an accurate assessment of the relationship between the price and the number of BTC wallet addresses
Specifically, at the height of the 2017 bull run, Bitcoin currently had 28 million wallet addresses with non-zero balances. When the price of BTC dropped from $19,000 to $6,000, the number of wallet addresses also plummeted nearly. 7 million, or 25%.
The current increase in holders coincides with Bitcoin falling more than 55% from it’s all-time high of nearly $68,000 registered last November.
It can be seen that it is impossible to accurately assess this relationship because it depends on many factors such as the emergence of new coins on the market, the acceptance of the governments and the appropriate use of the investment, etc. However, the strong growth in the number of wallets shows that Bitcoin can grow in more economic areas.
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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