The ‘Bitcoin Rich List’, Which is BTC Wallet Addresses with Over 1,000 Coins, is Trending Up 30%
The Bitcoin Rich List is a list that displays addresses that have over 1,000 BTC. According to Yahoo! Finance, the list has increased by 30% in the last 12 months, which suggests that there are more high net-worth investors than there were before. Now that the list is longer, many are wondering why this is the case. The growth can suggest a number of things, according to investors and analysts.
For instance, investor Willy Woo, an investor, and analyst stated,
“The two options are we have high-net-worth investors coming in or it could be cold storage practice at the exchanges and custody solutions. The latter explanation cannot be ruled out, but it does not coincide with other data we have on the timing of when supply increased at these entities. For now, I’m going with the first explanation.”
Alex Kruger, a trader, also weighed in on the matter. He shared with CoinDesk his position, pointing to the exchanges and stating that the amount of BTC in the exchanges and the number of exchanges and custodians has been growing. He further noted the flat state of on-chain transaction volume in BTC since September 2018, which is another indication that it may be because the exchanges have been increasing. The increase in exchanges typically have low on-chain transaction frequency.
Qiao Wang, the director of product at Messari, also provided insight. He stated that Bitcoin was originally owed by Satoshi and then a few early miners. Over time though, their shares decreased and others entered the market.
Interestingly enough, the state of the Bitcoin Rich List has reached a point where it matches the early years of Bitcoin. Woo added that Bitcoin balances are seeing a fresh desire and that the prices are significantly higher than they were five years ago. As a result, it is possible that this may be a new renaissance for Bitcoin, powered by more high net worth investors.