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Bitcoin has witnessed its price bottoming during August-December 2018 when it fell to $3,200; since then, the crypto market has been struggling, recently with some degree of success, to escape from the bears. Alongside Bitcoin, all other popular cryptocurrencies with the largest market caps have also lost 80% or even more of their total gains.
However, something surprising has started to happen after Bitcoin touched the bottom. According to report from 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 Diar points out, an overall of 26% of the total Bitcoin circulation which is currently in supply, is 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 writes, referring to the increased holdings 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 surged considerably when Bitcoin bottomed out in December 2018. After that crash, Bitcoin accumulation has increased dramatically and now stands at around 12Mn addresses that comes under the firm size bracket. According to Diar, these addresses tally today at $6 billion more than the last time Bitcoin was at $8,000 in August 2018 (that doesn’t even include the Coinbase coins).
More Bitcoin in “Big Money” Addresses
It’s also essential to note that these are not inactive addresses or merely 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 in 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.
When evaluating retail sized wallets consisting of 1-100 Bitcoins (almost 38% of total Bitcoins in supply), there is a rise of 126K Bitcoin which 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 beginning of 2018, whilest today it stands at a whopping 750,000 Bitcoins. Moreover, trading volumes have also witnessed new highs this year, which clearly indicate that the bulls may dominate the Bitcoin, and crypto, market in the near future.