Definition:
The number of unique Bitcoin addresses holding a minimum value of $1 million.
Over the past year, the number of Bitcoin addresses with balances exceeding $1 million has experienced significant fluctuations, reflecting the broader market dynamics. At the start of 2024, there were fewer than 100,000 such addresses, correlating with Bitcoin’s stable price around $40,000.
Surge in Addresses Amid Rising Prices
As Bitcoin’s price surpassed $70,000 by March 2024, the number of millionaire addresses soared to over 120,000. This increase underscored the direct relationship between Bitcoin’s price movements and the emergence of high-value addresses.
Volatility and Decline in Mid-2024
By mid-2024, the market faced volatility, leading to a decline in the number of millionaire addresses. The total fell to approximately 100,000 as Bitcoin’s price dipped below $60,000.
Historical Comparisons to Previous Bull Runs
This pattern is not new. During the 2021 bull run, Bitcoin’s price neared $65,000, causing the number of millionaire addresses to exceed 110,000. However, during market corrections in 2018 and 2022, the count of these addresses dropped significantly, highlighting how large Bitcoin holdings are sensitive to market conditions.
Cyclical Nature of High-Value Bitcoin Addresses
The observed trend over the years emphasizes the recurring pattern where the number of high-value Bitcoin addresses expands during bull markets and contracts during downturns. This behavior reinforces the cyclical nature of Bitcoin’s market dynamics.
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