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While the price of Bitcoin is experiencing a significant decline, the data reveals a surprising trend: the number of addresses with more than 0.1 BTC is approaching a new all-time high, demonstrating the continued confidence among small investors.
Accumulation continues despite the decline
The recent crypto market correction has not deterred retail investors. On the contrary, it seems to have whetted their appetite for Bitcoin.
According to data from Bitcoin Magazine Pro, the number of addresses with more than 0.1 BTC (or about $5,000 at current prices) is 4,580,424, which is close to the all-time high of 4,586,540 addresses.
This trend is all the more remarkable as it occurs in a context of high volatility. The price of Bitcoin actually fell from a peak of around $67,500 to less than $50,000 before stabilizing between $50,000 and $60,000.
Despite this 24% drop from the all-time high, investors seem to be viewing this correction as a buying opportunity rather than a warning sign.
A reliable indicator of increasing Bitcoin adoption
Experts consider the rise of addresses with small amounts of BTC as a reliable indicator of cryptocurrency adoption. Indeed, this suggests a democratization of Bitcoin investment, outside of large institutional portfolios.
This trend is part of the larger context of Bitcoin becoming more scarce. Of the 21 million Bitcoins that will ever be created, approximately 19 million have already been mined. Additionally, it is estimated that nearly 3 million Bitcoins could be permanently lost, making every fraction of BTC that much more valuable in the eyes of investors.
In short, the continued influx of small investors into Bitcoin, despite market volatility, shows continued confidence in the long-term potential of the cryptocurrency queen. More stable than price fluctuations, this metric offers valuable insight into the true adoption of cryptocurrencies.
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I am passionate about Bitcoin, I love exploring the twists and turns of blockchain and cryptocurrencies and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.