Preface
As expected, the international markets are paying attention to macroeconomic news and Bitcoin, which has been following them for some time, has inevitably been dominated by this news. Recently, investors have felt the impact of these events with every fiber of their being. After the last meeting of the Federal Reserve, about 20 days ago, which brought the market with a relatively significant rise, we saw the positive impact of the CPI rate on the market last Wednesday. So that for the first time after the price fall, a daily candle above 24,000 was recorded and it also saw the number of 25,000. It seems that the economic conditions governing the world still determine the path of the market.
On the other hand, Ethereum and the exciting news of it, being merged, have seized the crypto space and taken control of the market. The 30% growth of Bitcoin since the end of the market crash until now, compared to the growth of more than 100% of Ethereum, is evidence of our words. Given that Bitcoin had a slower performance compared to Ethereum and the other Altcoins in these green days, it seems that the current money flowing into digital currencies is primarily planned towards short-term gains.
Chart Description
Network researchers and Bitcoin investors need to know how many people own and use Bitcoin. Interestingly most people are still looking for the answer to this question in the number of wallets in the Bitcoin network (Number of addresses); But why doesn't this chart take us to the exact number of Bitcoin holders?
There are two basic problems that prevent us from examining the Number of Addresses chart to reach the question:
- An individual or entity has several bitcoin wallets.
- A wallet belongs to several people (for example, exchange wallets)
This is the place that the Entity Adjusted metric arises with the purpose of separating bitcoin wallets and bitcoin holders into different metrics. The chart we study this week is called Number of Entities with Balance ≥ 1k, which shows the number of unique individuals who have more than 1,000 Bitcoins.
Current Situation
Today, due to the increase in popularity and acceptance of cryptocurrencies, the traces of whale activity in this market can be seen more than before. With all these interpretations, there are rich people who use this opportunity and make large investments by observing these markets and the increasing tendency of people towards cryptocurrencies. Although these people may have entered the market only because of their wealth and do not have great experience. As an example, we can mention a wallet that bought more than 2,700 bitcoins at the price level of 69,000! The history of the chart shows that whales are often a few steps ahead of the rest of the investors, and the changes in the market can be seen in their behavior before being seen on the price chart. In addition to Bitcoin's past trends, this can be seen in February 2021 (red circle) and also in May this year (black circle).
Currently, the number of Bitcoin whales is at its lowest level in the last 2.5 years, and a little more than 1,700 whales are still active in the market. All the downward trends in the past indicate that we need the accompany of the whales to stabilize the upward trend, and until it does not happen, we cannot be sure that the market will rise.