Current Trends in Bitcoin Adoption Amidst Market Volatility
The Bitcoin network continues to expand, showing signs of adoption even as market fluctuations persist. However, a particular group of investors is witnessing a decline in activity.
Decline in Bitcoin Addresses Holding 100+ BTC
Recent insights from on-chain analytics firm Santiment highlight the ongoing evolution in Bitcoin adoption. A key indicator in this analysis is the “Supply Distribution,” which provides insights into the number of addresses holding specific amounts of Bitcoin.
Advertisement Banner
Bitcoin investors or addresses are categorized into various groups based on their current holdings. For example, the 1 to 10 coins category encompasses all wallets owning between one to ten Bitcoin tokens. In the context of this discussion, three major categories are of interest: 0 to 0.1 coins, 0.1 to 100 coins, and 100+ coins. The first two categories represent smaller investors, often referred to as shrimps, crabs, and dolphins. In contrast, the 100+ coins group signifies major players in the market, known as sharks and whales.
Recent Trends in Bitcoin Supply Distribution
Santiment has shared a chart illustrating the recent trends in Bitcoin Supply Distribution for these groups over the past few months. According to this data, both the 0 to 0.1 coins and 0.1 to 100 coins groups have seen an increase in their Supply Distribution metrics. This suggests a rise in the number of addresses within these sizes on the network.
Over the past month, the 0 to 0.1 coins group has seen an increase of 37,390 addresses, while the 0.1 to 100 coins group has grown by 12,754. Although these groups have experienced significant growth, the trajectory has not been linear, especially for the smaller 0 to 0.1 coins cohort. Initially, a crash in Bitcoin’s price led to an increase in addresses for these groups, but ongoing volatility prompted some investors to exit the market.
Despite this, the net adoption of Bitcoin during these volatile times is a promising sign. The trend among sharks and whales, however, presents a different picture. Compared to a month ago, the number of wallets holding 100+ coins has decreased by six. While this decline is not substantial, the influence of investors is often proportional to their holdings. Consequently, these large holders play a vital role in the market’s dynamics.
The decrease in shark and whale addresses could have more significant implications than the growth observed among smaller investors. Santiment notes that a resurgence in the number of 100+ BTC wallets could signal a potential crypto-wide breakout on the horizon.
Current Bitcoin Price Movements
Bitcoin is gradually recovering from recent price declines, with its value now surpassing $90,000. Despite experiencing volatile price actions, the cryptocurrency appears to be stabilizing.
