According to the latest report from Fidelity Digital Assets, the number of bitcoin wallets holding at least $1,000 worth of bitcoins has increased by 20% since the beginning of 2024.
Market trends and investor behavior
This type of increase in the number of Bitcoin wallets indicates that even smaller investors are increasingly trusting Bitcoin, even in the face of price fluctuations. Fidelity’s report points to a number of factors behind the shift in market behavior and investor attitudes, including the increasing monetization of bitcoin and the growing adoption of the cryptocurrency. In addition to all this, the report also highlighted an interesting trend among bitcoin hodlers. The net position of long-term holders showed a significant decrease between the third and fourth quarters of 2023. The amount of bitcoins they held decreased from 40,442 to 31,376. The group continued to see significant outflows, which can be partly explained by Bitcoin reaching new highs. This situation is unusual for bitcoin’s halving cycle and may indicate that investors saw bitcoin as overvalued prior to the halving.
The increase in the number of bitcoin wallets
The number of bitcoin wallets containing at least $1,000 worth of bitcoins has reached 10.6 million, more than double the 2023 figure. This figure marks a new record in the history of cryptocurrency, a dramatic 101% increase compared to previous years. In addition to the increase in the number of bitcoin wallets, the market value of Bitcoin also achieved a significant increase of nearly 25% in recent months, which strengthened the optimism of the investor community.
Related: Founders of popular bitcoin wallet arrested on money laundering charges
Self-preservation and investor safety
In recent years, more and more bitcoin owners have decided to keep their cryptocurrencies themselves, avoiding the security risks associated with these exchanges. The rise in popularity of self-custody is related to various security incidents on stock exchanges and concerns about a decrease in stock market liquidity. This trend is expected to continue to strengthen, especially among investors managing larger amounts.
