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 reached a new all-time high. The number of wallets holding at least 1 BTC or more has reached 950,000, according to analytics firm Glassnode.
Bitcoin podcast host Jake Woodhouse told Cointelegraph that “to the untrained eye, the price of something reflects value. However, price action should not be confused with value, as the most recent bitcoin market data shows.” He added:
“Plebeians around the world are buying up bitcoin as they see it as an opportunity to accumulate a massively undervalued asset that most people think has no value when the price drops. “Bitcoin is dead,” the mainstream screams… Is it true? Understandably, many disagree.
Bitcoin “pleb” is the name that adorns ordinary people around the world who support Bitcoin. The plebeians buy bitcoins — or, in layman’s terms, stacked satoshis (satoshis) — and continue to believe in bitcoin despite mainstream media’s efforts to glorify decentralized technology.
The trend coincides with the billions of dollars of bitcoin and crypto exchanges. As Woodhouse suggests, bitcoin plebeians with more modest means show higher levels of conviction while the price flirts with poor teenagers.
Woodhouse delves into the issue of self-custody: “How many of these BTC are self-custody, never to be moved again? My bet is the majority. Indeed, in the wake of the FTX debacle, some bitcoin enthusiasts are learning to control their bitcoins by registering record withdrawals from exchanges.
According to Glassnode, exchange balances have been on a downward trend since the beginning of the year. In January, the balances of the exchanges were approximately 2.8 million, or almost 15% of the total number of bitcoins mined. In November, balances on exchanges fell to 2.3 million bitcoins, less than 11% of the total supply.
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Woodhouse told Cointelegraph: “The bear market is highlighting scammers who sell bitcoin derivatives, naturally promoting the bitcoin self-custody superpower that I believe people are paying attention to; huge positive signal for bitcoin bulls.”
Billionaire Michael Saylor, one of the richest bitcoin bulls, agrees with him. Sailor recently shared some wisdom with Cointelegraph regarding bear markets. He advised bitcoin buyers to relax and focus on the bigger picture.