The number of Bitcoin holders has been steadily rising amid the bear market
While the value of Bitcoin (BTC) has fluctuated significantly this year, there has been a significant increase in the number of holders of the flagship digital asset despite the ongoing crypto bear market.
Indeed, the number of Bitcoin holders has steadily increased amid a bear market in the broader crypto space, as investors continue to find solace in BTC as a store of value while holding the digital commodity.
As of September 27, the number of Bitcoin holders has grown over the past year, adding over 4.5 million new holders, per data from IntoTheBlock.
The platform noted:
“Over 42 million addresses currently hold $BTC4.5 million more than a year ago.”
Bitcoin traders hit a new all-time high
Interestingly, Finbold reported on September 16 that the number of Bitcoin addresses holding at least 0.01 BTC has reached a new all-time high of 10,702,698, according to data of blockchain analytics platform Glass node indicated.
It’s worth noting that Finbold also reported in September that 47% of Bitcoin owners remain in profit despite BTC’s 60% price drop in 2022, suggesting that many Bitcoin investors are unfazed by the ongoing bear market. In fact, the number of new daily Bitcoin addresses created on the network recorded a peak of 417,354 new addresses on September 14th.
Prominent crypto trading analyst Ali Martinez stated that the trend can be attributed to input from sideline investors involved in the market.
“This suggests an increase in interest from sidelined investors to scoop up BTC around the current price levels,” he said in a chirping on September 16.
With Bitcoin supply on exchanges hitting a 4-year low “with less than 9% of BTC on exchanges for the first time since 2018, it’s a good confidence signal for bulls.”
Bitcoin is still seen by many as a hedge against inflation
Although Bitcoin’s price has struggled to hold above $20,000 in a year defined by significant declines, a recent surge in trading volume has hit a three-month high.
As some investors view Bitcoin as a hedge, others sell their fiat currency holdings to benefit from arbitrage. This new development demonstrates Bitcoin’s capacity to realize its promise and fulfill one of its founding principles, which is to serve as a hedge against inflation.
As it stands, Bitcoin is changing hands at $19,940, up 3.74% over the past 24 hours and down 1.23% over the past seven days, with a total value of $382 billion, according to CoinMarketCap data.
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