Bitcoin had witnessed an ultimate lower circuit during August- December 2018 and fell to $3200. Ever since then the crypto market has been struggling to escape from the bears. As a result, along with Bitcoin, all other popular cryptocurrencies with the largest market caps had also lost more than 80% of its total gains. However, something surprising has started to happen after Bitcoin touched the bottom. According to Diar, the number of Bitcoin supply holding accounts has been increased in the last nine months. In other words, smart investors have started to accumulate Bitcoin right after it touched the bottom.
As numbers represented by Diar, overall 26% of total bitcoin which are currently in supply, are now sitting in addresses that have a balance of 1000-10k BTC. ‘In August 2018 when Bitcoin was also at $8000, these ‘Firm Size’ addresses held under 20% of the circulating supply showing a sharp accumulation of nearly 7% in less than a year,’ Dair wrote referring to increased holding of Bitcoin in supply. Moreover, the increased number of Bitcoin addresses holding up to 1-10K Bitcoin was because of Coinbase which shifted about 5% (856,000 Bitcoins across 107 addresses) of supply into new cold storage security facilities.
The number of Bitcoins held by this ‘Firm’ size bracket had surged considerably when Bitcoin bottomed out in December 2018. After that crash, Bitcoin accumulation has increased dramatically and now stands around 12Mn addresses that comes under the firm size bracket. According to Diar, these addresses stand today at $6Bn more than the last time Bitcoin was at $8000 in August 2018 (that doesn’t even include Coinbase coins). And these are not stale addresses or lost bitcoin as most have been active in the past three months. From the beginning of 2019, more than 100,000 Bitcoins have been found into addresses that fall into a firm size bracket which only accounts for 40% of newly minted Bitcoins this year. Since the beginning of the bear market in January 2018, 955k Bitcoins have been minted through inflation as a reward to miners as per the data recorded on-chain.
Coming to retail sized wallets (1-100 Bitcoins), almost 38% of total Bitcoins in supply, which are 126K sit in accounts of this category. This segment has also witnessed a steady and continuous increase since the beginning of this year. However, the number of Bitcoin minted in this segment hasn’t seen a major uptrend.
The number of Bitcoin held by major addresses of crypto exchanges was over 300K Bitcoins at the start of 2018 which today stands at whopping 750,000 Bitcoins. Moreover, trading volumes have also witnessed new highs this year which clearly indicated that Bitcoin may drive the bull market in the near future.