Number of Bitcoin addresses in plus reached new all-time high – is the low point there?

There are currently more Bitcoin keys with at least one Satoshi than ever before. The number of plus credit addresses is even higher than at the peak of the bull market in 2017.

The numbers give a small indication of the number of Bitcoin users around the world. Despite the record number of plus-balance Bitcoin wallets, the price remains far from its all-time high of 2019 – but some believe the current downtrend is close to a low.

 

All-time high: 28.39 million addresses hold the same amount of Bitcoin

The news of the all-time high of the addresses in the plus comes from venture investor Alex Thorn. Based on the data from CoinMetrics.io he has found that the number of addresses containing any amount of bitcoin has exceeded the previous all-time high of 28.38 million. It was reached at the height of the bull market in 2017.

According to Thorn, the number of Bitcoin addresses with a positive balance shows how many individual Bitcoin users there are worldwide. There are, however, two important reservations with this metric. First, there is nothing suggesting that each address represents a single user. Users can have many wallets and wallets often have multiple addresses. This alone would make the number of addresses with a positive account balance much larger than the user base of the cryptocurrency.

In fact, even at the beginning of Bitcoin’s story, Satoshi Nakamoto has pointed out how important it is for users to change addresses. In the white paper itself, the Bitcoin creator writes:

    “As an additional firewall, a new key pair should be used for each transaction so that they are not connected to a common owner.”

The accuracy of the numbers is further affected by the fact that a large number of Bitcoin users leave their digital currency on the stock exchanges. In this way, their holdings are located at a single address – along with the bitcoins of many other users. This would make the number of addresses in the plus significantly lower than the actual number of users.

Thorn argues that the large number of people who hold Bitcoin on exchanges makes it more likely that the actual number of users is even greater than 28.39 million addresses. According to him, the increasing number of plus balance sheet addresses is a sign of the increasing acceptance of Bitcoin – even if it is far from perfect.

Investor Timothy Peterson of Cane Island Alternative Advisors believes that similar data can be used to determine a local low point in the market. Peterson says: The bottom of the current downtrend is reached when the median price of Bitcoin in the last 30 days matches the number of active addresses reported by CoinMetrics.