BTC - Pay attention to more than just the price
Sometimes it helps to pay attention to more than just the price
By most accounts, bitcoin has had a stellar 2020.
It's up over 40% so far on the year and there have been very few pull backs in sight.
It's been the year of the bull so far.
However, even during the bear market there were several things going on 'under the hood' that could have given you an idea of the health of the market.
The first being new wallet addresses holding at least 1 BTC in them...
Wallet addresses just keep climbing...
I have done several posts about this in the past, but the main takeaway from them was that those addresses holding at least 1 bitcoin in them just keeps going up.
Regardless of the price.
Well, that data holds true with smaller wallet addresses as well...
Check it out:
(Source: https://twitter.com/n3ocortex/status/1229877030314967042)
Wallet addresses holding less than 1 bitcoin but more than .01 bitcoin in them has been steadily increasing as well.
Both have just been going up and up and up.
This is a good indicator of distribution of the coin, which is a good thing.
Some people can and do have more than one wallet address, but overall this likely means more people than ever before are holding and participating in bitcoin.
Reserve Risk Chart hinting this is a good time to buy
The Reserve Risk metric is saying this is good time to buy.
It was created by hansthered on Twitter and it is used to judge whether bitcoin is attractive relative to its risk and potential reward.
Specifically, this metric is used as a way to asses the confidence of long term holders relative to bitcoin's price:
(Source: https://twitter.com/glassnode/status/1229797675412992001)
And right now it is in the buy zone.
Even though the price is up significantly off its lows, the risk of buying now is actually lower than it was at prior points when the price was lower than it is today.
Right now offers some of the highest reward potential with the lowest risk that we have seen in bitcoin in several years.
This is not financial advice, but more speculation on my part based on numerous patterns, fundamentals, and technicals.
Stay informed my friends.
-Doc
I think number of BTC wallets holding large amount of coins correlates with number of new exchanges as people don't like using older exchanges because their favorite coin can't be listed on them, so they start new exchanges just for listing those coins... Eventually community of one coin will start using the same exchange and that will exponentially increase number of coins in the exchange wallet... Another factor is the developers of new coins who cash out their altcoins as BTC and keep some of them waiting for future exchange listing fees.
But I agree with the OP about holders with more than 0.01 and more tan 0.1 BTC in them, means more people is getting the gist of how it works and are saving money individually and that's good imo
I think 2019 was a big year in crypto with so many promising new coins. People are awaiting for BTC to go even higher and that means people are holding some of their coins instead of cashing them all... Eventually those wallets that still have less than 1 BTC will have a lot more...