- The number of Bitcoin addresses with 1,000+ BTC has dropped to the level it was around January.
- Moskovski gave three reasons why the addresses have been decreasing.
The leading cryptocurrency, Bitcoin (BTC), dropped by thousands of dollars on Monday after reaching an all-time high (ATH) above $61,000. The market value of the cryptocurrency wasn’t the only thing that decreased. The number of Bitcoin addresses holding at least 1,000 BTC began to decline heavily as Bitcoin soared to ATH.
Lex Moskovski, the CEO of Moskovski Capital, shared the data from Glassnode on Wednesday, explaining the number of whales with 1,000+ BTC had declined to the level early this year when the cryptocurrency was trading around $20,000. He suggested three possible reasons the addresses have declined.
Moskovski’s take on the declining number of 1,000+ Bitcoin addresses
At first, Moskovski mentioned that some of the Bitcoin whales might have split their BTC holdings, which is sometimes required by digital currency custody platforms. Again, he raised an opinion that the declining number of Bitcoin addresses was because of some wallets getting below the 1,000 coin limit. Moskovski also added that some of the whales might have been selling off their Bitcoin to cash out their profit.
However, someone noted that there should have been an increase in the number of BTC addresses holding at least 100 BTC if the first two reasons put forward by Moskovski were true. Following data from Glassnode, there isn’t yet any noticeable spike in the number of addresses holding 100+ Bitcoin.
Bitcoin rich list
According to Bitinfocharts, there are currently 132,148 addresses holding between 10 – 100 BTC. About 13,965 addresses are holding between 100 – 1,000 BTC, while 2,183 addresses hold from 1,000 to 10,000 BTC.