Smaller wallet addresses in the Bitcoin (BTC) ecosystem continue to accumulate BTC despite market turmoil.
The number of known addresses on the Bitcoin blockchain holding 1 BTC or more has hit a new all-time high. According to blockchain analytics company Glassnode, the number of wallets holding at least 1 BTC or more has reached 950,000.
Bitcoin podcast host Jake Woodhouse told Cointelegraph that “To the untrained eye, the price of something reflects the value. However, price action should not be confused with value, as represented by the most recent data in the Bitcoin market.” He added:
“Commoners around the world are hoarding Bitcoin as they see it as an opportunity to hoard a wildly undervalued asset, which most assume to be worthless as the price plummets. ‘Bitcoin is dead,’ shouts the traditional world… Is it? Clearly, many disagree.”
Bitcoin “rabble” is the name that adorns ordinary people around the world who support Bitcoin. Commoners buy Bitcoin—or, in commoner parlance, stack sats (Satoshis)—and continue to believe in Bitcoin despite mainstream media attempts to praise decentralized technology.
The trend coincides with the exit of billions of dollars of Bitcoin and cryptocurrencies from exchanges. As Woodhouse suggests, Bitcoin plebs of humbler means are demonstrating higher levels of conviction as the price flirts with the lows.
Woodhouse digs into self-custody: “How many of these BTC are in self-custody never to be moved again? My opinion: the majority.” In fact, in the aftermath of the FTX fiasco, some Bitcoin enthusiasts are learning to guard their Bitcoin, recording record withdrawals from exchanges.
According to data from Glassnode, exchange balances have been trending lower since the beginning of the year. In January, the balances of the exchanges amounted to about 2.8 million, that is, almost 15% of the total supply of Bitcoin mined. In November, exchange balances are down to 2.3 million Bitcoin or almost 11% of the total supply.
Woodhouse told Cointelegraph: “The bear market is exposing fraudsters who have been selling bitcoin derivatives, naturally promoting bitcoin’s self-custody superpower, which I think individuals are paying attention to – a sign of huge positivity for bitcoin bulls”.
Billionaire Michael Saylor, one of the richest Bitcoin bulls, agrees. Saylor recently shared some thoughts on the bear market with Cointelegraph. He advised Bitcoin buyers to relax and focus on the big picture.
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