Glassnode Data Shows Significant Decrease in Addresses Holding Over 100 Bitcoins

According to reports, Glassnode data shows that 15962 addresses hold over 100 Bitcoins, a new low in three months.

Data: Addresses holding over 100 Bitcoins hit a three month low

In recent news, it has been reported that Glassnode data reveals a significant decrease in the number of addresses holding over 100 Bitcoins. As of July 2021, there were only 15,962 addresses holding over 100 Bitcoins, marking a new low in three months. In this article, we will analyze the possible reasons behind this decrease and its potential impact on the cryptocurrency market.

Possible Reasons Behind the Decrease in Addresses

There are several possible reasons why the number of addresses holding over 100 Bitcoins has decreased. One of the main reasons could be the recent market correction, which has caused many investors to sell their assets. Bitcoin’s price plunged in May and June, and many investors fear further drops in the cryptocurrency’s value. Therefore, investors might have sold their holdings to avoid further losses.
Another possible reason could be the recent trend of institutional investors buying Bitcoin. Several institutional investors, including MicroStrategy, Tesla, and Square, have invested a significant amount in Bitcoin in recent months. These investments might have reduced the number of addresses holding over 100 Bitcoins, as large amounts of Bitcoin are now held by institutional investors.
Lastly, the decrease in the number of addresses holding over 100 Bitcoins could be attributed to the increasing popularity of altcoins. Many investors are now diversifying their portfolios by investing in altcoins, as they offer higher returns than Bitcoin. Therefore, investors might have sold their Bitcoin holdings to invest in altcoins.

Potential Impact on the Cryptocurrency Market

The decrease in the number of addresses holding over 100 Bitcoins could have a significant impact on the cryptocurrency market. As mentioned earlier, this decrease could be a signal that investors are losing confidence in Bitcoin’s value. If this trend continues, it could cause further drops in Bitcoin’s price and negatively impact the entire cryptocurrency market.
Moreover, the increasing trend of institutional investors buying Bitcoin could cause further centralization of Bitcoin ownership. As large amounts of Bitcoin are held by institutional investors, it could reduce the decentralization of the cryptocurrency and potentially make it more vulnerable to market manipulation.

Conclusion

In conclusion, the decrease in the number of addresses holding over 100 Bitcoins is a concerning trend for the cryptocurrency market. It could be a signal of decreasing investor confidence in Bitcoin’s value and could potentially cause further drops in the cryptocurrency’s price. Furthermore, the increasing trend of institutional investors buying Bitcoin could cause further centralization of the cryptocurrency and reduce its decentralization.

FAQs

1. What caused the decrease in the number of addresses holding over 100 Bitcoins?

There are several possible reasons, including the recent market correction, the trend of institutional investors buying Bitcoin, and the increasing popularity of altcoins.

2. How could the decrease in the number of addresses holding over 100 Bitcoins impact the cryptocurrency market?

The decrease in the number of addresses holding over 100 Bitcoins could cause a decrease in investor confidence in Bitcoin’s value, potentially causing further drops in the cryptocurrency’s price. It could also cause further centralization of Bitcoin ownership.

3. What is the potential impact of institutional investors buying Bitcoin?

The increasing trend of institutional investors buying Bitcoin could cause further centralization of the cryptocurrency and reduce its decentralization. Large amounts of Bitcoin held by institutional investors could also make it more vulnerable to market manipulation.