Bitcoin price stumbles, small investors take advantage

Opportunity of the year? – Despite a blood red crypto market since November 2021, activity on chain on Bitcoin (BTC) is sound in many ways. The information given by its analysis can help to read (in part) the behavior of bitcoiners. against the market, Bitcoin actually chain HUDs.

“If you don’t have a BTC at 50…”

Among the positive observations of the Bitcoin blockchain study, the number of wholecoiners is at his ATH. The wholecoiners are the wallets that have at least one BTC.

Since it’s important to take a step back, let’s start by zooming out.

ATH on the number of wallets holding at least 1 bitcoin.
Source: Glassnode

The long-term curve is basically bullish if we look from the date of genesis block, January 3, 2009 to the present day. There are now 867,431 addresses that have one bitcoin or more, with no less than 52,881 new wallets since January 1. The price of a bitcoin has fallen by 57% since the start of the year. Nothing out of the ordinary.

Last week alone recorded 13,091 new wholecoiners. The belief in the network, the return on investment (let’s say it) long term, and the future of the network is illustrated on these graphs.

BTC's drop below $20,000 helped ennoble new wolecoiners.
BTC’s drop below $20,000 helped ennoble new wolecoiners.
Source: Glassnode

Put in relation to the price, this trend is very eloquent. Number of wallets owning 1 BTC is even in a parabolic phase as the price is currently working price levels below the 2017 ATH.

However, it is necessary to put your data into perspective, because the same natural or legal person can have several wallets. It is therefore unlikely that the number of portfolios concerned does not correspond to 867,431 distinct individuals.

The number of wallets owning a tenth of a bitcoin is also at a record level with 3,613,643 addresses displaying more than 0.1 BTC.

ATH also for the 3,613,643 addresses that hold more than 0.1 BTC. Source: Glassnode

For his part, the hash rate begins to descend after having chained peaks on peaks from its “ bottom in July 2021. At the time, the FUD coming from China and the nth “ban” of miners had drastically reduced the difficulty of mining.

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Bitcoin miners: the misfortune of some is the happiness of others

A dream opportunity to mine for competitors, or even new entrants. Mining equipment available in large quantities for resale, fewer competitors and lower mining difficulty. Bingo.

This helped kick off the bullish hash rate rally.
This helped kick off the bullish hash rate rally. Source: Glassnode

However, since the beginning of May (last touch with $40,000 per BTC), we have observed a loss of steam in this uptrend. The price of a bitcoin has indeed fallen by 50% since then, putting a number of miners with less solid projects out of the game.

It is therefore highly likely that various miners have already or are in the process of disconnecting from the Bitcoin network, which we will find out soon enough. If Bitcoin holds its prices for several weeks/months, miners without a solid foundation and competitive electricity will also be forced out of the network.

Leading in the following weeks to an adjustment of the difficulty, ASICs available on the secondary market, for the benefit of those who have anticipated and then managed the lean period.

Analysis on chain is particularly interesting after a period of high volatility, especially to see the behavior of investors. It would seem that believers in the long-term success of Bitcoin are more and more numerous when we relate the observations to that of the price, which has only been falling since November 2021. On the mining side, it will still be necessary to wait a few weeks to be able to analyze in more depth how the last six months have been (di)managed.

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