Number of Active BTC Wallet Addresses Rose Substantially Before Bitcoin Spike
Bitcoin is getting a lot of attention for the recent jump in price, but the fact that there was already a growing number of active wallets prior to the boost.
In the last two weeks, Bloomberg reports that, while there is usually about 50% of Bitcoins that reside in inactive wallets for around six months at a time, the same numbers haven’t been accurate lately. Instead, only about 10% of Bitcoins are sitting still, according to data on March 15th.
Eric Stone, the co-founder and head of data science for Flipside, said that “crypto optimist[s]” will find this to be a great development. Stone adds that its a sign that more people are starting to gravitate towards the purchase of Bitcoin, which ends up benefiting the entire industry.
Typically, the big movements in the prices of these coins come from a few whales, which are investors that hold a substantially large portion of the market’s capitalization. When the whales shift their position, the market sways, which is exactly what caused Bitcoin to drop by 40% last fall. However, this rise for Bitcoin was much more widespread, as smaller wallets got involved.
Dave Balter, a co-founder and the CEO of Flipside, said that the changes made by the group of small wallets are considered to be “much more valid than a few whale moves” that happened previously.
He concurred with Stone’s theory, in that the change is likely indicative of renewed confidence or a change in the view of Bitcoin.