Paradigm shift? – If you bought your first satoshis in 2011, there is little chance that you will have kept them until the $69,000 per Bitcoin reached last November. Volatile, uncertain, the crypto market is gradually maturing, becoming more mature. And “the market”, it is the men who make it. Are crypto investors more and more confident in their thesis, to the point of forgetting the “sell” button?
Crypto Market Down, Bitcoin Hodlers Up
The year 2021 has brought its share of volatility and good news for the crypto ecosystem. The official arrival of institutional players like Tesla has greatly contributed to this. Indeed, this type of investor being there for the long term, there is enough to reassure the small investor as to his interest in cryptos.
Shortly after the crypto report issued by Coin Metrics, it’s Glassnode’s turn to reveal behind the scenes of the market. Specialized in analysis on chainthe company has just revealed that the bitcoin holders have never been so numerous.
The graph above shows the Bitcoin non-zero addresses, i.e. BTC addresses with a non-zero balance. Thanks to the total history of the BTC, we can therefore appreciate this trend, which is globally in constant increase. We learn that 40,276,163 addresses have Bitcoin. The previous record was set at the beginning of February 2022. In addition, this record comes when the market has been in a bearish phase for more than 3 months. An encouraging sign.
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A new investor profile?
As we can see, things really got going from 2014. The announcements ofaltcoins and colored cornerswho came to compete with the king BTC have stimulated the market. At the time, all cryptos were pegged to Bitcoin. Precious orange tokens were therefore needed to be able to then explore the other networks.
This therefore contributed to the buying pressure, mechanically driving up prices. Other data reported by FSInsight suggests that 75% of the mined BTC mass was “illiquid.” That is to say, they have not been moved for several years. They are therefore not “actively” exchanged. Perhaps in the hope of reselling (much) higher?
In any case, this demonstrates the growing interest in cryptocurrencies, and in Bitcoin in particular. Often compared to digital gold, it pulls the market like a locomotive. On-chain data analysis provides a better understanding of investor behavior, linking it to the price of the underlying asset.
Recent events in Canada as well as Russia, are huge catalysts for Bitcoin. Indeed, in the face of arbitrary confiscations, the BTC has demonstrated that properly used, it is uncensorable. The fact that its network operates in peacetime does not dazzle the “no-coiners”. But seeing the concrete use cases of cryptos in times of war, could bring light to some.
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