The number of Bitcoin wallet addresses has reached a record high, suggesting crypto investors have been content to ‘buy the dip’ and hold the digital currency following the recent market crash.
According to a Coindesk report citing Glassnode data, the number of Bitcoin addresses in accumulation hit a record of 545,115 on Monday, an increase of 16,445 since May 8.
Addresses in accumulation are defined as those with at least two Bitcoin transfers and no spent funds, essentially indicating a long-term holder. These transfers must be larger than crypto ‘dust’ (very small amounts of leftover tokens) to be classed as accumulation.
The numbers indicate significant demand for Bitcoin from investors following the sharp declines seen in the market last week and over the weekend, as concerns over Chinese crypto regulation and the environmental impact of Bitcoin caused a wave of selling activity and the prices of digital currencies to tumble across the board.
Bitcoin itself reached a four-month low of around US$34,259 in the early hours of Monday morning, and while the price has recovered somewhat since then it is still trading well off the all-time high of over US$63,300 seen in mid-April.
However, many Bitcoin holders, as well as newcomers buying the dip, may be hoping for a repeat of the aftermath of Bitcoin’s first major crash in late 2017, which saw the crypto plunge from a then-record high of over US$18,000 to below US$10,000 for almost three years before soaring in value at the end of 2020.
In late afternoon trading in London on Tuesday, Bitcoin was down 0.2% in the last 24 hours at US$37,907.