Bitcoin breaks 1,000,000,000 address milestone as pressure on ‘Diamond Hand’ crypto holders increases: Glassnode
Bitcoin has officially passed a major network milestone.
Users have now created more than a billion Bitcoin addresses, according to crypto analytics firm Glassnode.
Each unique address is basically a series of letters and numbers representing a virtual location that BTC can be sent to.
“The total number of Bitcoin (BTC) addresses ever created just exceeded 1,000,000,000. Current value: 1,000,002,559.”
The milestone comes as long-term and highly doomed crypto holders with “diamond hands” face pressure to hold their ground and avoid capitulation.
According to Glassnode, the proportion of BTC held by long-term (LTH) holders versus short-term (STH) holders suggests that Bitcoin has not yet bottomed out.
“In the depths of previous bear markets, the proportion of supply held by LTHs, and at a loss, reached over 34%. Meanwhile, the share held by STHs declined to just 3% to 4% of the offer.
At present, STHs still hold 16.2% of the losing supply, suggesting that freshly redistributed coins must now go through the maturation process in the hands of higher conviction holders. This indicates that although many bottom formation signals are in place, the market still needs an element of duration and time to establish a resilient bottom. Bitcoin investors are not off the hook just yet.
Glassnode also highlights the risk that in the coming months, an increasing number of Bitcoin miners who power the network will have to sell their BTC to stay afloat.
“The length of the miners’ capitulation in the 2018-2019 bear market was around 4 months, with the current cycle only starting 1 month ago. Miners are currently holding around 66.9,000 BTC in total in their treasuries, and therefore the next quarter is likely to continue to be distributed unless coin prices recover significantly.
The bigger picture, according to the company, is that Bitcoin appears to be entering the latter stages of a bear market, with both long- and short-term holders facing increasing pressure to sell.
Glassnode analysts describe a wide range of crypto investors as essentially living in a pressure cooker.
They say further downward moves may be needed to test the true conviction of crypto holders and ultimately form a final bottom in the market.
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