Bitcoin ‘Wholecoiners’ Top 1M for 13 Months: A Stable Base

In A Nutshell

The landscape of Bitcoin ownership has marked a significant milestone with the number of “wholecoiners” – entities holding at least one full Bitcoin – persisting above the one million threshold for over 13 months. This consistency showcases a robust holder base amidst fluctuating market conditions. Despite the inherent volatility in the cryptocurrency market, this sustained level of wholecoiner wallet addresses highlights a growing trend in the accumulation of Bitcoin, underscoring the cryptocurrency’s appeal and resilience.

Understanding the Wholecoiner Phenomenon

The term “wholecoiner” refers to Bitcoin addresses that possess one or more Bitcoin. The registry of such addresses has shown a remarkable steadiness, maintaining a count above one million since May 13, 2023. This observation comes from Glassnode, a leading blockchain analytics firm, which noted the all-time high of wholecoiner addresses reaching 1,024,000 in January. Presently, the count stands at 1,010,800, even as Bitcoin’s value has seen substantial growth since May 2023.

The Significance of the Milestone

The achievement of over one million Bitcoin wholecoiners is more than just a numerical milestone; it represents a broader trend of Bitcoin’s increasing ownership and possibly, its distribution among a wider base of investors. However, it’s crucial to remember that multiple addresses may belong to a single investor, and large quantities of Bitcoin are held by institutional players such as cryptocurrency exchanges and investment firms. With the current circulating supply of Bitcoin at 19.7 million, exchanges hold approximately 2.48 million BTC, indicating a significant concentration of Bitcoin in these institutional wallets.

Lost Bitcoins and Market Dynamics

Another intriguing aspect of the Bitcoin ecosystem is the estimated 3 million BTC that are considered permanently lost. This loss, accounting for roughly 17% of the total circulating supply, emphasizes the immutable and risk-laden nature of cryptocurrency investments. Additionally, the history of Bitcoin wholecoiners has seen its fair share of fluctuations, with notable dips during market downturns, reflecting the volatile and speculative environment of cryptocurrency markets.

Our Take

The sustained level of Bitcoin wholecoiners above the one million mark for over a year is a testament to the enduring appeal and confidence in Bitcoin as a leading cryptocurrency. This stability, against the backdrop of a dynamic and often unpredictable market, signals a strong base of investors committed to holding onto their Bitcoin investments. While the concentration of Bitcoin in institutional wallets presents questions about market centralization, the overall growth in wholecoiner addresses is a positive indicator of Bitcoin’s adoption and the potential for broader distribution among individual investors in the future. As the cryptocurrency landscape continues to evolve, the persistence of wholecoiners will be a key metric to watch, offering insights into investor sentiment and the foundational strength of Bitcoin.

Sources:

• Glassnode