Bear Market Effect: Bitcoin Addresses Holding Over 1,000 BTC Drop to a 4-Year Low
According to the blockchain data platform Glassnode, the total number of Bitcoin addresses owning 1,000 BTC or more has plunged to its 2019 levels.
The entity revealed that currently, there are just 1,997 addresses holding over $26.4 million worth of the primary cryptocurrency (calculated at current prices).
— glassnode alerts (@glassnodealerts) September 26, 2023
The downtrend has been evident since the prolonged bear market began last year when the industry witnessed the Terra crash and the subsequent collapses of Celsius Network and Three Arrows Capital (3AC).
The environment’s conditions worsened towards the end of 2022 when the former crypto giant FTX experienced a liquidity crisis and filed for bankruptcy, triggering multi-billion investor losses.
Somewhat expectedly, Bitcoin addresses holding over 1,000 BTC were on the rise during the bull run in 2021. At one point, the number of such investors reached approximately 2,500.
As CryptoPotato recently reported, the situation with Ethereum is much similar. The number of ETH addresses holding more than 1,000 coins dropped to a 5-year-low of 6,082 last week.
While some experts, such as the digital asset financial services platform – Matrixport, have predicted a further downtrend for Ether, this is not the case with Bitcoin.
Many analysts have forecasted that the largest crypto asset by market capitalization might soon enter a fresh bull run, which could result in a renewed interest from investors.
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