The Bitcoin wallet that holds at least $1,000 is growing with a ‘positive trend’: loyalty

There are more bitcoin owners than ever before—each one smaller than a shrimp but collectively resembling a whale.

as if Report In a Monday release, Fidelity Digital Assets noted that Bitcoin addresses holding at least $1,000 worth of BTC are on the rise, calling it a “positive growth trend.”

This constituency is projected to grow 100% from 5.3 million bitcoin addresses in 2023 to an all-time high of 10.6 million wallets in mid-March, the analysts wrote.

“This may be indicative of Bitcoin's growing circulation and acceptance among the ‘average' person,” the analysts wrote.

But Fidelity cautioned that its measurement of Bitcoin's price appreciation and address strength at the time was not 100% accurate. As of this writing, $1,000 buys approximately 0.016 bitcoins CoinGecko.

In crypto circles, a sea hierarchy is often used to describe Bitcoin holders: a “whale” is an address that holds at least 1,000 bitcoins, while a “shrimp” at the opposite end holds at least one bitcoin. Depending on the marine food chain, people with between zero and one bitcoin would probably be called “plankton”.

The short-term outlook for Bitcoin is generally very good. Fidelity's analysts have provided a number of “long-term” data points. Of the 16 Bitcoin metrics tracked, a quarter were rated as “negative” or “neutral,” while half were “positive.”

Another indicator tracked in the report looks at how much bitcoin is held on crypto exchanges. A multi-year downward trend continued in the first quarter of 2024, Fidelity wrote, falling 4.2% to 2.3 million bitcoins—30% below the peak of 3 million bitcoins held in 2020.

However, the report cautioned, “This does not necessarily equate to an increase in self-control.” The authors note that custodians such as Fidelity are working on solutions that allow customers to control their keys when they trade in derivatives.

A “negative” indicator of note: historical levels of paper profits for Bitcoin holders. More than 99% of Bitcoin addresses were in the green at the end of the first quarter, analysts wrote, “As the number of addresses in profit grows, the possibility of selling may increase as traders and new investors look to realize profitability.” He said.

Edited by Ryan Ozawa.